Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000.
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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company’s required rate of return is 12%. Calculate the internal rate of return on this project and discuss whether it should be accepted.
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Answer Wayne Company should accept the investment proposal The internal rate of return IRR from the ...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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