A projects is being considered by XYZ Co. Detailed cash flows for this project are: Project initial cost $212,840. Annual benefit of $25,000 for 20 years If XYZ Co. is using MARR of 8%, find the IRR for this project.

A projects is being considered by XYZ Co. Detailed cash flows for this project are: Project initial cost $212,840. Annual benefit of $25,000 for 20 years If XYZ Co. is using MARR of 8%, find the IRR for this project.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...

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Question

A projects is being considered by XYZ Co. Detailed cash flows for this project are:
Project initial cost: $212,840.
Annual benefit of $25,000 for 20 years
If XYZ Co. is using MARR of 8%, find the IRR for this project.

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