question archive Inatech is contemplating to undertake Project B and perform a financial analysis to determine whether it is financially lucrative
Inatech is contemplating to undertake Project B and perform a financial analysis to determine whether it is financially lucrative
Subject:FinancePrice: Bought3
Inatech is contemplating to undertake Project B and perform a financial analysis to determine whether it is financially lucrative. Project B have the cash flows as shown below and Inatech uses a required rate of return of 30%. Compute the internal rate of return for the project to determine whether it is worth undertaking.
|
Year |
B |
|
0 |
-$400,000 |
|
1 |
$75,000 |
|
2 |
$100,000 |
|
3 |
$150,000 |
|
4 |
$150,000 |
|
5 |
$750,000 |
