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Hotel 3 6 5 8 Location Minneapolis Chicago Miami Las Vegas NPV of Cash Flow (Thousands) $58 $0.1 $24 -$21 A project manager in charge
Hotel | 3 | 6 | 5 | 8 |
Location | Minneapolis | Chicago | Miami | Las Vegas |
NPV of Cash Flow(Thousands) | $58 | $0.1 | $24 | -$21 |
A project manager in charge of building new hotels for hotels unlimited inc has a stern warning from her boss that any new hotel has to have an internal rate of return above their required rate of return. She ran 4 new projects the company is considering and those results are in the table above. What hotels return is very close to its IRR?
Why is the IRR important to the company and is used to evaluate investment decisions such as which hotel project is acceptable because it meets the companys decision criteria?
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