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Posted on Sep 07, 2024

An investment costs $ 2 3 , 9 5 8 and will generate cash flow of $ 6 0 0 0 annually for five years.

An investment costs $

23, 958

and will generate cash flow of $

6000

annually for five years. The firms cost of capital is

10

percent.

What is the investments internal rate of return

(

IRR

) ?

Based on the IRR should the firm make the investment?

What is the investment

s net present value? Based on NPV

,

should the firm make the investment?

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