Corporate Finance Q51

0. A capital investment of 90, 000 is expected to generate an after – tax cash flow of 50,000 one year from today and a cash flow of $55,000 two years from today. The cost of capital is 12 percent. The internal rate of return is closest to:

Answer
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Option : C
Explanation : Enter the following values in a financial calculator: CF0 = -90,000, CF1 = 50,000, CF2 = 55,000, CPT IRR. IRR = 10.74%.

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