Perez Company is considering an investment of $21,530 that provides net cash flows of $6,500 annually for four years (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below.
Perez Company is considering an investment of $21,530 that provides net cash flows of $6,500 annually for four years (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...
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