Corporate Finance Q52
0. A capital project with a net present value (NPV) of €14.02 has the following cash flows in euros:
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flows | -150 | 40 | 40 | 50 | 60 | 40 |
The internal rate of return (IRR) for the project is closest to:
- Option : C
- Explanation : Enter the following values in a financial calculator: CF0 = -150, CF1 = 40, CF2 = 40, C03 = 50, C04 = 60, C05 = 40, CPT IRR. IRR = 15.57% rounding up to 16%.
