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GTO Incorporated is considering an investment costing $ 2 5 9 , 8 0 0 that results in net cash flows of $ 4 0

GTO Incorporated is considering an investment costing $259,800 that results in net cash flows of $40,000 annually for 11 years. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
Note: Use appropriate factor(s) from the tables provided.
(a) What is the internal rate of return of this investment?
(b) The hurdle rate is 10.5%. Should the company invest in this project on the basis of internal rate of return?

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