The financial manager at Genesis Company is looking into the purchase of an apartment complex for $550,000. Net aftertax cash flows are expected to be $65,000 for each of the next five years, then drop to $50,000 for four years. Genesis’ required rate of return is 9% on projects of this nature. After nine years, Genesis Company expects to sell the property for aftertax proceeds of $300,000. What is the respective internal rate of return (IRR) and net present value (NPV) on this project?
A) 7.01%; ?$53,765.
B) 13.99%; $166,177.
C) 6.66%; ?$64,170. |
发表于 2013-4-1 12:22
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