QUESTION 4 Hook n' Crook, Inc. has a 2-year project with the following cash flows: I=-$1,000, C₁ = +$5489, and C₂ =-S-4490. Find the value of the LARGEST IRR of this project. Note: If you wish, you may use the calculator to find one of the IRRS, and then use a method given in your class notes to find the other one, so you can determine which one is the largest number. Give the answer as a percent with two decimals; e.g., 23.24 and, as always, do not include symbols in your answer.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
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QUESTION 4
Hook n' Crook, Inc. has a 2-year project with the following cash flows: I=-$1,000, C₁ = +$5489, and C₂ =-$-4490. Find the value of the
LARGEST IRR of this project. Note: If you wish, you may use the calculator to find one of the IRRS, and then use a method given in your class
notes to find the other one, so you can determine which one is the largest number. Give the answer as a percent with two decimals; e.g., 23.24
and, as always, do not include symbols in your answer.
Transcribed Image Text:QUESTION 4 Hook n' Crook, Inc. has a 2-year project with the following cash flows: I=-$1,000, C₁ = +$5489, and C₂ =-$-4490. Find the value of the LARGEST IRR of this project. Note: If you wish, you may use the calculator to find one of the IRRS, and then use a method given in your class notes to find the other one, so you can determine which one is the largest number. Give the answer as a percent with two decimals; e.g., 23.24 and, as always, do not include symbols in your answer.
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