. The facility will generate annual cash inflows of $399,500 and will need new annual cash outflows of $152,600. The company has a required rate of return of 7%. Click here to view PV table. Calculate the internal rate of return on this project. (Roun

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Viera Corporation is considering investing in a new facility. The estimated cost of the facility is $1,911,898. It will be used for 12 years, then sold for $718,600. The facility will generate annual cash inflows of $399,500 and will need new annual cash outflows of $152,600. The company has a required rate of return of 7%. Click here to view PV table.

Calculate the internal rate of return on this project. (Round answer to 0 decimal place, e.g. 13%.)

Internal rate of return is _________?  %  


Whether the project should be accepted.

The project         SHOULD OR SHOULD NOT??? - be accepted.
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