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A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $210,000. The present value of the future
A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $210,000. The present value of the future cash nows is $275,000. The company's desired rate of return used in the present value calculations was 12%. Which of the following statements is true? The internal rate of return on the project is more than 12% b. The internal rate of return on the project is less than 12% The project should not be accepted because the net present value is negative. d. The internal rate of return on the project is equal to 12%
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