Oak Enterprises accepts projects earning more than the firm's 14% cost of capital. Oak is currently considering a 10-year project that provides annual cash inflows of $40 comma 000 and requires an initial investment of $275 comma 700. (Note: All amounts are after taxes.) a.Determine the IRR of this project. Is it acceptable? b.Assuming that the cash inflows continue to be $40 comma 000 per year, how many additional years would the flows have to continue to make the project acceptable (that is, to make it have an IRR of 14%)? c.With the given life, an initial investment of $275 comma 700, and cost of capital of 14%, what is the minimum annual cash inflow the investment would have to provide in order for this project to make sense for Oak's shareholders? a.The project's IRR is 7.43%. (Round to two decimal places.) Is the project acceptable?(Select the best answer below.) A. No Your answer is correct.B. Yes b.Assuming that the cash inflows continue to be $40 comma 000 per year, the number of additional years the flows would have to continue to make the project acceptable at the 14% discount rate is nothing additional years.(Round to two decimal place

Homework: Homework Ch 10 Save Score: 0.5 of 1 pt 6 of 7 17 complete) HW Score: 88.57%, 6.2 of 7 pts P10-18 (similar to) Question Help IRR, investment life, and cash inflows Oak Enterprises accepts projects eaming more than the firm's 14% cost of capital. Oak is currently considering a 10-year project that provides annual cash inflows of $40,000 and requires an initial investment of $275,700. (Note: All amounts are after taxes.) a. Determine the IRR of this project. Is it acceptable? b. Assuming that the cash inflows continue to be $40,000 per year, how many adalonal years would the flows have to continue to make the project acceptable (that is, to make it have an IRR of 14%)? c. With the given life, an initial investment of $275,700, and cost of capital of 14%, what is the minimum annual cash inflow the investment would have to provide in order for this project to make sense for Oak's shareholders? a. The project's IRR is 7.43 %. (Round to two decimal places.) Is the project acceptable? (Select the best answer below.) A. No OB. Yes b. Assuming that the cash inflows continue to be $40,000 per year, the number of additional years the flows would have to continue to make the project acceptable at the 14% discount rate is additional years. {Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. - part I remaining Clear All Check