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Pharoah Corporation is considering investing in a new facility. The estimated cost of the facility is $1,991,950. It will be used for 12 years, then
Pharoah Corporation is considering investing in a new facility. The estimated cost of the facility is $1,991,950. It will be used for 12 years, then sold for $715,000. The facility will generate annual cash inflows of $380,000 and will need new annual cash outflows of $153,400. The company has a required rate of return of 7%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answer to 0 decimal place, e.g. 13%.)
Internal rate of return is | enter the internal rate of return in percentages rounded to 0 decimal places % |
Whether the project should be accepted.
The project select an option shouldshould not be accepted. |
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