Management of Ivanhoe, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $193,011,370. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1–4 $27,985,000 5–7 87,030,000 8–10 91,490,000 What is the IRR of this project?

Management of Ivanhoe, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $193,011,370. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1–4 $27,985,000 5–7 87,030,000 8–10 91,490,000 What is the IRR of this project?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows

Section: Chapter Questions

Problem 19P

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Years		Cash Flow
1–4		$27,985,000
5–7		87,030,000
8–10		91,490,000

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