The Dyson Corporation has recently evaluated a proposal to invest in cost-reducing production technology. According to the evaluation, the project would require an initial investment of $17,166 and would provide equal annual cost savings for five years. Based on a 10 percent discount rate, the project generates a net present value of $1,788. The project is not expected to have any salvage value at the end of its five-year life. Refer to Dyson Corporation. What is the project's expected internal rate of return? Present value tables or a financial calculator are required. Select one: a. 13% b. 11% Ⓒc 10% O d. 14%

The Dyson Corporation has recently evaluated a proposal to invest in cost-reducing production technology. According to the evaluation, the project would require an initial investment of $17,166 and would provide equal annual cost savings for five years. Based on a 10 percent discount rate, the project generates a net present value of $1,788. The project is not expected to have any salvage value at the end of its five-year life. Refer to Dyson Corporation. What is the project's expected internal rate of return? Present value tables or a financial calculator are required. Select one: a. 13% b. 11% Ⓒc 10% O d. 14%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give typing answer with explanation and conclusion
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