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Sunland Corporation is considering investing in a new facility. The estimated cost of the facility is $2,336,000. It will be used for 12 years, then sold for $740,000. The facility will generate annual cash inflows of $398,000 and will need new annual cash outflows of $127,000. The company has a required rate of return of 7%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted. (Round answer to O decimal places, e.g. 13%) Internal rate of return The project should be %

Sunland Corporation is considering investing in a new facility. The estimated cost of the facility is $2,336,000. It will be used for 12 years, then sold for $740,000. The facility will generate annual cash inflows of $398,000 and will need new annual cash outflows of $127,000. The company has a required rate of return of 7%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted. (Round answer to O decimal places, e.g. 13%) Internal rate of return The project should be %

FINANCIAL ACCOUNTING
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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Sunland Corporation is considering investing in a new facility. The estimated cost of the facility is $2,336,000. It will be used for 12 years, then sold for $740,000. The facility will generate annual cash inflows of $398,000 and will need new annual cash outflows of $127,000. The company has a required rate of return of 7%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted. (Round answer to O decimal places, e.g. 13%) Internal rate of return The project should be %
Transcribed Image Text:Sunland Corporation is considering investing in a new facility. The estimated cost of the facility is $2,336,000. It will be used for 12 years, then sold for $740,000. The facility will generate annual cash inflows of $398,000 and will need new annual cash outflows of $127,000. The company has a required rate of return of 7%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted. (Round answer to O decimal places, e.g. 13%) Internal rate of return The project should be %
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