Question
the Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is $1,020. The firm's cost of
the Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is
$1,020.
The firm's cost of capital is
11.4%.
After-tax cash flows, including depreciation, are as shown in the table below. Calculate the internal rate of return (IRR) for this project.
| End of Year | Cash Flow |
|
| 1 | $290 | |
| 2 | 290 | |
| 3 | 290 | |
| 4 | 290 | |
| 5 | 290 |
The IRR of the project is
nothing%
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Fundamentals of Database Systems
Authors: Ramez Elmasri, Shamkant Navathe
6th edition
136086209, 978-0136086208
