Perez Co. is considering an investment of $27,336 that provides net cash flows of $9,000 annually for

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Perez Co. is considering an investment of $27,336 that provides net cash flows of $9,000 annually for four years.

(a) What is the internal rate of return of this investment?

(b) The hurdle rate is 10%. Should the company invest in this project on the basis of internal rate of return?

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Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

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Question Posted: Oct 28, 2021 01:38 AM

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Perez Co. is considering an investment of $27,336 that provides net cash flows of $9,000 annually for

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a The internal rate of return IRR of this investment is 144 To calcu...View the full answer

Fundamental Accounting Principles

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