(Ignore income taxes in this problem.)Heap Corporation is considering an investment in a project that will have a two year life.The project will provide a 10% internal rate of return,and is expected to have a $40,000 cash inflow the first year and a $50,000 cash inflow in the second year.What investment is required in the project?

Question

Quizplus · Accepted Answer

Investment = ($40,000 × 0.909) + ($50,000 × 0.826)
= $36,360 + $41,300 = $77,660

(Ignore Income Taxes in This Problem