Posted by **Alexis** on Tuesday, July 28, 2009 at 10:22pm.

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.

WACC 10.00%

Year

0

1

2

3

4

5

Cash flows

-$9,000

$2,000

$2,025

$2,050

$2,075

$2,100

A. 3.39%

B. 4.68%

C. 4.46%

D. 3.34%

E. 3.52%

The chose B but I don't think it is correct

The answer I chose is B

- Investing ( pease help) -
**drwls**, Tuesday, July 28, 2009 at 11:16pm
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.

- Investing ( pease help) -
**Alexis**, Tuesday, July 28, 2009 at 11:42pm
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.

- Investing ( pease help) -
**Alexis**, Tuesday, July 28, 2009 at 11:45pm
Years 0 1 2 3 4 5

cash flow

-$9,000

$2,000

$2,025

$2,050

$2,075

$2,100

- Investing ( pease help) -
**MathMate**, Wednesday, July 29, 2009 at 9:10am
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.

- Investing ( pease help) -
**MathMate**, Wednesday, July 29, 2009 at 9:47am
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

## Answer this Question

## Related Questions

- Finance - Thompson Stores is considering a project that has the following cash ...
- finance - Thompson stores is considering a project that has the following cash ...
- Math - Indigo Industrial, Inc. is trying to determine which, if any, of five ...
- Finance - Capital Budgeting Problems I. Indigo Industrial, Inc. is trying to ...
- financial management - 1)The cost of a project is $500,000 and the present value...
- Business finance - Question No 1: Sumi Inc. has policy of paying a Rs. 9 per ...
- financ - All techniques with NPV profile- mutually exclusive projects. Projects ...
- finance - All techniques with NPV profile- mutually exclusive projects. Projects...
- Accounting - The ranking of project differs, depending on the use of IRR or NPV ...
- homework - Ms. Brown estimates the following cash flow for the first five years ...

More Related Questions