Question
A project requires an initial investment of $250,000 and provides annual cash inflows of $60,000 for 6 years. Calculate the IRR and compare it to
A project requires an initial investment of $250,000 and provides annual cash inflows of $60,000 for 6 years. Calculate the IRR and compare it to the company's required rate of return of 8%.
Requirements:
- Use the given cash inflows to set up the IRR equation.
- Solve for IRR using financial calculator or iterative methods.
- Determine if the project meets the required rate of return.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
