![]() ![]() A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when the cash flows are discounted using the project's IRR.He has offered the following suggestions and observations: They are: Year Cash Flow Year 1 $2,400,000 Year 2 $4,500,000 Year 3 $4,500,000 Year 4 $4,500,000 The CFO has asked you to compute Project Zeta's initial investment using the information currently available to you. However, he found a note that detailed the annual net cash flows expected to be generated by Project Zeta. The company's CFO remembers that the internal rate of return (IRR) of Project Zeta is 13.2%, but he can't recall how much Green Caterpillar originally invested in the project nor the project's net present value (NPV). lost a portion of its planning and financial data when both its main and its backup servers crashed. ![]() Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. ![]()
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