The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $375,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $173,111 $173,111 $173,111 $173,111 The appropriate discount rate for this project is 18%. The internal rate of return (IRR) for this project is closest to: A. 30% B. 35% C. 23% D. 18%

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
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The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $375,000. The Sisyphean Company
expects cash inflows from this project as
detailed below:
Year 1
Year 2
Year 3
Year 4
$173,111
$173,111
$173,111
$173,111
The appropriate discount rate for this project is 18%.
The internal rate of return (IRR) for this project is closest to:
A. 30%
B. 35%
C. 23%
D. 18%
Transcribed Image Text:The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $375,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $173,111 $173,111 $173,111 $173,111 The appropriate discount rate for this project is 18%. The internal rate of return (IRR) for this project is closest to: A. 30% B. 35% C. 23% D. 18%
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