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The world dictionary needs to purchase a new printing machine cost 1.8 million. managment is estimating that the machine will generate cash inflow of 250,000
The world dictionary needs to purchase a new printing machine cost 1.8 million. managment is estimating that the machine will generate cash inflow of 250,000 for 3 years and 350,000 for the following 4 years. If management requires a minimum 15 percent rate of return, should they purchase this particular machine?why or why not?
a. yes because the IRR is 18.30 percent
b. yes because the IRR is 4.32 percent
c.no because the IRR is 18.30 percent
d.no because the IRR is 4.32 percent
e.the answer connot be determinded as there are multiple IRRs
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