QS 24-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (0) What is the internal rate of return of this investment? (PV of $1, EV of $1 PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 5%. 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. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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QS 24-23 (Algo) Internal rate of return LO P4
Perez Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years.
(a) What is the internal rate of return of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from
the tables provided. Round your present value factor to 4 decimals.)
(b) The hurdle rate is 5%. 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.
H
Required A
Required B
What is the internal rate of return of this investment?
Present value factor
Internal rate of return
< Required A
Required B >
nices
Transcribed Image Text:QS 24-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 5%. 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. H Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return < Required A Required B > nices
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