Question
Ferguson Furniture is planning to expand their product line to include outdoor furniture. This will require the purchase of a new assembly line for $1,200,000.
Ferguson Furniture is planning to expand their product line to include outdoor furniture. This will require the purchase of a new assembly line for $1,200,000. They expect to have a net income of $250,000; $280,000; $300,000; $325,000; and $360,000 for the first five years, respectively. Using the internal rate of return (IRR) calculation in Excel, what is the IRR for this project?
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
