Question
A $180,000 capital investment will produce annual profits of $29,000 for the first five years and $25,000 for the next five years. It will have
A $180,000 capital investment will produce annual profits of $29,000 for the first five years and $25,000 for the next five years. It will have no residual value.
| A | What is its IRR? (Round your answer to 1 decimal place.) |
| The investment's IRR is_____% |
| b. | Should it be undertaken if the cost of capital is 8%? |
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
