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Q8 Kelly was evaluating the feasibility of a project that has an initial investment of $190,000 and subsequent investments of $165,000 in the 1 st
Q8
Kelly was evaluating the feasibility of a project that has an initial investment of $190,000 and subsequent investments of $165,000 in the 1 st and 2 nd years. From the 3rd year onwards, it will generate cost savings of $235,000 every year for 6 years. a. If the project has a terminal value of $85,000, what is the Internal Rate of Return a. If the project has a terminal value of $85,000, what is the Internal Rate of Return (IRR) ? % Round to two decimal places b. Should the project be accepted if the company's cost of capital is 25.00% ? POD,UUU, VVIIdL is lile illeriad Kale UI Keluir (IRR)? % Round to two decimal places b. Should the project be accepted if the company's cost of capital is 25.00% ? (IRR)? % Round to two decimal places b. Should the project be accepted if the company's cost of capital is 25.00% ? (click to select) Yes No Step by Step Solution
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