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Considering a project that has the cash flow data

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Reference no: EM131320456

Please show how you got your answers step by step with classic text book formulas, not Excel.

a) Tucker Corp. is considering a project that has the following cash flow data. What is the project's IRR? A project's projected IRR can be negative, in which case it will be rejected.

Year: 0123 Cash flows: -$1,000 $450 $450 $450

b) Wells Inc. is considering a project that has the following cash flow data. What is the project's payback?

Year: 0123 Cash flows: -$1,000 $500 $500 $500

c) Rappaport Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC: 10.00%

Year: 01234

Cash flows: -$1,000 $400 $405 $410 $415

d) Barry Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC: 10.00%

Year: 012345

Cash flows: -$1,200 $400 $395 $390 $385 $380

Reference no: EM131320456

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