33) The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 3 Year 4 Year 1 Year 2 $157,452.975 $157,452.975 $157,452.975 $157,452.975 The appropriate discount rate for this project is 15%. What is the internal rate of return (IRR) for this project? And will you accept this project or not and why? (Show your work.)
33) The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 3 Year 4 Year 1 Year 2 $157,452.975 $157,452.975 $157,452.975 $157,452.975 The appropriate discount rate for this project is 15%. What is the internal rate of return (IRR) for this project? And will you accept this project or not and why? (Show your work.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:33) The Sisyphean Company is planning on investing in a new project. This will involve the
purchase of some new machinery costing $400,000. The Sisyphean Company expects cash
inflows from this project as detailed below:
Year 3
Year 4
Year 1
Year 2
$157,452.975 $157,452.975 $157,452.975 $157,452.975
The appropriate discount rate for this project is 15%. What is the internal rate of return (IRR) for
this project? And will you accept this project or not and why? (Show your work.)
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