Question
Fish Taco, a popular Mexican restaurant is considering expanding by opening 3 new locations. They have estimated a total initial cost (for all 3 location)
Fish Taco, a popular Mexican restaurant is considering expanding by opening 3 new locations. They have estimated a total initial cost (for all 3 location) of $2,592,838 for the expansion project to be paid immediately. Each of the 3 restaurants is anticipated to produce cash flows of $107,253 each semiannual period for 9 years with the first cash flows to be received one semiannual period from today. At the end of year 9 they expect to sell the locations for $345,968 each after collecting the last $107,253 in semiannual revenue from each location. Find the projects IRR.
For your consideration: Should Fish Taco pursue the project if their cost of capital is 15%
Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals.
Enter percentage answers as a positive percentage % rounded to 2 decimal places. For example 0.123456 should be enter as: 12.35 (##.##).
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