(IRR; sensitivity analvsis) Padre Yacht Club is considering adding a new dock to its marina facilities to accommodate larger yachts. The dock would cost $340,000 and would generate $72,000 annually in new cash inflows. Its ex¬ pected life would be eight years, and it would have no salvage value. The firm’s cost of capital and discount rate are 8 percent.

a. Calculate the internal rate of return for the proposed dock addition (round to the nearest whole percent).

b. Based on your answer to part (a), should the company add the new dock? C. How much annual cash inflow would be required for the project to be minimally acceptable?

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