Question
A company will invest $100,000 in a new machine today. The machine will generate $10,000 per year, starting in one year from today, for 20
A company will invest $100,000 in a new machine today. The machine will generate $10,000 per year, starting in one year from today, for 20 years.
If all projects that the company does must reach an internal rate of return (IRR) of i(1) =8%, will this project be approved?
NOTE: Please use Excel and show full solution
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Public Finance In Theory And Practice
Authors: Richard Abel Musgrave, Peggy B. Muscrave
5th Edition
0070441278, 978-0070441279
