Internal Rate of Return for a Company's New Development Project
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A Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of capital is 20 percent. What is the internal rate of return on this project?
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Solution Summary
This solution attaches an Excel spreadsheet that show how the IRR is calculated for a given project.
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- MPhil, Madurai Kamaraj University
- MCom, Annamalai University
- IATA, International Air Transport Association
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