Goodyear Tire & Rubber Co has a project with initial investment requiring $-120,000 and the following...

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Finance

Goodyear Tire & Rubber Co has a project with initialinvestment requiring $-120,000 and the following cash flows will begenerated because of the project: $27,000; $31,000; $53,000;$41,000; and $29,000 respectively at the end of each year for thenext five years. If the required rate of return is 0.17, find theinternal rate of return (IRR) of the project.
21.80%
14.87%
15.90%
none of the answers is correct
10.85%
Xylem Inc has a project with initial investment requiring$-240,000 and the following cash flows will be generated because ofthe project: $60,000; $51,000; $66,000; and $41,000 respectively atthe end of each year for the next four years. If the required rateof return is 0.12, find the Net Present Value (NPV) of theproject.
-$28,847
-$53,079
-$72,738
none of the answers is correct
-$57,695

Answer & Explanation Solved by verified expert

4.1 Ratings (690 Votes)

1 Internal rate of return is calculated using a financialcalculator by inputting the belowPress the CF buttonCF0 120000 It is entered with a negative sign since it isa cash outflowCash flow for each year See Answer

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Goodyear Tire & Rubber Co has a project with initialinvestment requiring $-120,000 and the following cash flows will begenerated because of the project: $27,000; $31,000; $53,000;$41,000; and $29,000 respectively at the end of each year for thenext five years. If the required rate of return is 0.17, find theinternal rate of return (IRR) of the project.21.80%14.87%15.90%none of the answers is correct10.85%Xylem Inc has a project with initial investment requiring$-240,000 and the following cash flows will be generated because ofthe project: $60,000; $51,000; $66,000; and $41,000 respectively atthe end of each year for the next four years. If the required rateof return is 0.12, find the Net Present Value (NPV) of theproject.-$28,847-$53,079-$72,738none of the answers is correct-$57,695