Consider two streams of cash flows a and b stream as first

Reference no: EM13597970

Consider two streams of cash flows, A and B. Stream A's first cash flow is $9,900 and is received three years from today. Future cash flows in stream A grow by 4 percent in perpetuity. Stream B's first cash flow is $-9,000, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 12 percent.

Suppose that the two streams are combined into one project, called C . What is the IRR of project C? Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13597970

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