You wish to evaluate a project requiring an initial investment of $59,500 and having a useful life

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You wish to evaluate a project requiring an initial investment of $59,500 and having a useful life of 7 years. What minimum amount of annual cash inflow do you need if your firm has an 8.7% cost of capital? If the project is forecast to earn $11,400 per year over the 7 years, what is its IRR? Is the project acceptable?

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Principles of Managerial Finance

ISBN: 978-0134476315

15th edition

Authors: Chad J. Zutter, Scott B. Smart

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