A company is considering investing in a new project. The project requires an initial investment of $1,000,000
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A company is considering investing in a new project. The project requires an initial investment of $1,000,000 and is expected to generate cash inflows of $300,000 per year for the next 6 years. The company's cost of capital is 10%. Should the company invest in the project? Use the internal rate of return (IRR) method to make the decision and show all calculations.
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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