Pharoah Corporation is considering investing in a new facility. The estimated cost of the facility is $1,991,950. It will be used for 12 years, then sold for $715,000. The facility will generate annual cash inflows of $380,000 and will need new annual cash outflows of $153,400. The company has a required rate of return of 7%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answer to O decimal place, e.g. 13%.) Internal rate of return is Whether the project should be accepted. The project should V be accepted. %
Pharoah Corporation is considering investing in a new facility. The estimated cost of the facility is $1,991,950. It will be used for 12 years, then sold for $715,000. The facility will generate annual cash inflows of $380,000 and will need new annual cash outflows of $153,400. The company has a required rate of return of 7%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answer to O decimal place, e.g. 13%.) Internal rate of return is Whether the project should be accepted. The project should V be accepted. %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Pharoah Corporation is considering investing in a new facility. The estimated cost of the facility is $1,991,950. It will be used for 12
years, then sold for $715,000. The facility will generate annual cash inflows of $380,000 and will need new annual cash outflows of
$153,400. The company has a required rate of return of 7%. Click here to view PV table.
Calculate the internal rate of return on this project. (Round answer to O decimal place, e.g. 13%.)
Internal rate of return is
Whether the project should be accepted.
The project should
be accepted.
%
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