Next Company has made an investment of $1,130,000 in a project. This investment will generate a $200,000 net cash inflow each year for the next 10 years. What is the internal rate of return of this investment? O A.8% B. 10% O C. 12% OD. 14%
Next Company has made an investment of $1,130,000 in a project. This investment will generate a $200,000 net cash inflow each year for the next 10 years. What is the internal rate of return of this investment? O A.8% B. 10% O C. 12% OD. 14%
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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![Next Company has made an investment of $1,130,000 in a project. This investment will generate a
$200,000 net cash inflow each year for the next 10 years. What is the internal rate of return of this
investment?
OA. 8%
OB. 10%
O C. 12%
O D. 14%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39a95d77-b164-4613-873c-2111fce2937b%2Fdba6e52e-9119-4d14-b7aa-b51069ce50fb%2Fc959647_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Next Company has made an investment of $1,130,000 in a project. This investment will generate a
$200,000 net cash inflow each year for the next 10 years. What is the internal rate of return of this
investment?
OA. 8%
OB. 10%
O C. 12%
O D. 14%
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