For the project shown in the following​ table,
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​,
calculate the internal rate of return
​(IRR).
Then​ indicate, for the​ project, the maximum cost of capitalthat the firm could have and still find the IRR acceptable.
Initial investment ​(CF 0CF0​) | ​$160 comma 000160,000 | | | Copy to Clipboard | | + | | Open in Excel | | + |
|
Year ​(t​) | Cash inflows ​(CF Subscript tCFt​) |
1 | ​$45 comma 00045,000 | |
2 | ​$50 comma 00050,000 | |
3 | ​$45 comma 00045,000 | |
4 | ​$30 comma 00030,000 | |
5 | ​$35 comma 00035,000 | |
The​ project's IRR is __ %
​(Round to two decimal​ places.)