Blossom Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,095. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $88,500, and annual cash outflows would increase by $44,250. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%) Internal rate of return on this project is between Determine whether this project should be accepted? The project be accepted. % and %
Blossom Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,095. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $88,500, and annual cash outflows would increase by $44,250. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%) Internal rate of return on this project is between Determine whether this project should be accepted? The project be accepted. % and %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,095. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $88,500, and annual cash outflows would increase by
$44,250. The company's required rate of return is 12%. Click here to view the factor table.
Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%)
Internal rate of return on this project is between
Determine whether this project should be accepted?
The project
be accepted.
% and
%
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