Capital Budgeting Problem from CFA Boston Mock

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I’m almost positive that the answer key for this question is wrong but I could be wrong. Would greatly appreciate any thoughts.

I got 11.49% IRR but -1,117,708 NPV, with reject


  • -14.2M at T0
  • 2.26M CF 1-4
  • 12.51M CF 5 (actually got 12.16M CF for 5, but I used 12.51 as the question seems like it has a typo on the the terminal sale price)

Yup, wrong. IRR is correct at 11.49. The NPV is not though. Also, #52 afternoon is wrong, they never discounted the terminal cash flow.

Unfortunately, my post got deleted but I appreciate the confirmation. Also, thanks for pointing that other one out!

There are usually errata published by Boston CFA Society after the mock. I am assuming this one is from past Boston Mock exam. You can also get in touch with CFA Society of Boston to find out more about the correct answer to the question.

The mock is from this year. I wasn’t able to find the errata but I’ll see if the society can provide them. If you happen to know where it’s posted, please let me know. Muchas gracias!