2. Suppose that project's cash flows are Co = $82, G = -$30. C2 = -$100, C = -$100, C4 = $150. Required rate of return i

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2 Suppose That Project S Cash Flows Are Co 82 G 30 C2 100 C 100 C4 150 Required Rate Of Return I 1 (21.05 KiB) Viewed 76 times

2. Suppose that project's cash flows are Co = $82, G = -$30. C2 = -$100, C = -$100, C4 = $150. Required rate of return is 10%. (b) Compute NPV. Should you take the project based on the NPV rule? Compute IRR of this project. What would be an appropriate IRR rule for this project (.e., for which required rates of return the project should be accepted)? Suppose now that signs of cash flows are flipped, i.e., Co -$82, C = $30, C) = $100, C3 = $100, CA = -$150. What is IRR rule now? (c)