What is the true irr of the project with the cash flows

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Reference no: EM132006373

1. What is the true IRR of the project with the following cash flows if the firm would be able to reinvest the cash inflows at a rate of return equal to 10%?

Year 0: -$400

Year 1: $200

Year 2: $200

Year 3: $500

a. 19.88%

b. 36.88%

c. 25.09%

d. 29.93%

e. 33.98%

2. What is the NPV of the project with the following cash flows?

Year 0: -$400

Year 1: $200

Year 2: $200

Year 3: $400

The WACC for the project is 10%.

a. $269.6

b. $255.3

c. $266.4

d. $247.63

Reference no: EM132006373

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