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A company is considering investing in a new project. The project requires an initial investment of $1,000,000 and is expected to generate cash inflows of
A company is considering investing in a new project. The project requires an initial investment of $1,000,000 and is expected to generate cash inflows of $300,000 per year for the next 6 years. The company's cost of capital is 10%. Should the company invest in the project? Use the internal rate of return (IRR) method to make the decision and show all calculations.
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
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