Posted by Alexis on Tuesday, July 28, 2009 at 10:22pm.
No cash flow data was provided. You have not defined IRR or WACC. Frankly, I don't think you are going to get much help here.
Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.
Year
0
1
2
3
4
5
Cash flows
-$9,000
$2,000
$2,025
$2,050
$2,075
$2,100
answers
A. 3.39%
B. 4.68%
C. 4.46%
D. 3.34%
E. 3.52%
THE answer i choose was B.
Years 0 1 2 3 4 5
cash flow
-$9,000
$2,000
$2,025
$2,050
$2,075
$2,100
If you post an attempt to solve the problem as far as you can, chances are that teachers will help you with the math part which is probably where help is needed.
You still have not supplied the full cash flow information.
On the other hand, I have worked out a similar problem. You would have no difficulty solving yours after looking over the calculations of the example.
http://www.jiskha.com/display.cgi?id=1248867678
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