TikTok is considering a project that will cost $ 800,000 and is expected to last for 10 years and produce future cash flows of $ 175,000 per year. If the appropriate discount rate for this project is 12 per cent, what is the project's IRR? a. 12.52% b. 17.52% c. 18.52% d. 20.52%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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TikTok is considering a project that will cost $ 800,000 and is expected to last for 10 years and produce future cash flows of $ 175,000 per year. If the appropriate discount rate for this project is 12 per cent, what is the project's IRR?

a. 12.52%

b. 17.52%

c. 18.52%

d. 20.52%

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