Question
3.Marren Company has gathered the following data on a proposed investment project: Cost of the investment $1,130,000 Estimated salvage value $0 Annual cost inflows $200,000
3.Marren Company has gathered the following data on a proposed investment project:
Cost of the investment
$1,130,000
Estimated salvage value
$0
Annual cost inflows
$200,000
Life of the project
10 years
Discount rate
10%
(a) What is the approximate internal rate of return for this investment?
(b) Should the proposal be accepted? Why or why not?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
