Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive /  Kiley Electronics is considering a project that has the following cash flow data

 Kiley Electronics is considering a project that has the following cash flow data

Finance

 Kiley Electronics is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital (and even negative), in which case it will be rejected.

r:            14.00%

Year:                    0                             1                             2                             3

Cash                     -$1,100                $450                      $470                      $490

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

IRR of the project = 13.31%

The IRR is less than the cost of capital (14%). So, the project should be rejected.