Perez Company is considering an investment of $30,485 that provides net cash flows of $9,000 annually for four years.(a) What is the internal rate of return of this investment?b) The hurdle rate is 6%. Should the company invest in this project on the basis of internal rate of return? 6:05DoneA ezto.mheducation.comAACh 24: Assignme... iSavedave & ExitSubmitCheck my work14Perez Company is considering aninvestment of $30,485 that provides netcash flows of $9,000 annually for four1.62years.points(a) What is the internal rate of return ofthis investment? (PV of $1, FV of $1, PVAof $1, and FVA of $1) (Use appropriatefactor(s) from the tables provided.Round your present value factor to 4decimals.)(b) The hurdle rate is 6%. Should theSkippedeBookHintPrintcompany invest in this project on thebasis of internal rate of return?ReferencesComplete this question bRequired ARequired BWhat is the internal rate of rPresent value factorInternal rate of return%McGrawHill< Prev14 of 16Next >

Internal rate of return is the rate at which the present value of cash inflows is equal to the…

Perez Company is considering an investment of $30,485 that provides net cash flows of $9,000 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 EVA of $1) (Use appropriate

Perez Company is considering an investment of $30,485 that provides net cash flows of $9,000 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 EVA of $1) (Use appropriate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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