Grace kennedy has committed to investing c5500000 in a, Ask an Expert

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Grace Kennedy has committed to investing C$5,500,000 in a project with expected cash flows of C$1,000,000 at the end of Year 1, C$1,500,000 at the end of Year 4, and C$7,000,000 at the end of Year 5.

a) Demonstrate that the internal rate of return of the investment is 13.51%.

b) State how the internal rate of return of the investment would change if Grace Kennedy’s opportunity cost of capital were to increase by 5 percentage points.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92663503

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