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A company is considering an investment. The initial cost of the investment is $ 1 0 2 , 9 9 3 , and it will
A company is considering an investment. The initial cost of the investment is $ and it will generate annual net cash flows of $ for years. Present value factors for an annulty of $ for years follow.
tableInterest rate,Present value of an annuity o
a What is the internal rate of return of this investment?
b The hurdle rate is Should the company invest in this project on the basis of internal rate of return?
tablea Internal rate of returnb Should the company invest in this project on the basis of internal rate of return?
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