Tyler, Inc., is considering switching to a new production technology. The cost of the required equipment will be $3,764,394. The discount rate is 13.01 percent. The cash flows that the firm expects the new technology to generate are as follows. Years CF $(3,764,394) 1-2 3-5 $878,248 6-9 $1,534,992
Tyler, Inc., is considering switching to a new production technology. The cost of the required equipment will be $3,764,394. The discount rate is 13.01 percent. The cash flows that the firm expects the new technology to generate are as follows. Years CF $(3,764,394) 1-2 3-5 $878,248 6-9 $1,534,992
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
Section: Chapter Questions
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Transcribed Image Text:Tyler, Inc., is considering switching to a new production technology. The cost of the required
equipment will be $3,764,394. The discount rate is 13.01 percent. The cash flows that the firm
expects the new technology to generate are as follows.
Years CF
$(3,764,394)
1-2
3-5
$878,248
6-9
$1,534,992
Transcribed Image Text:The IRR of the project is
%, and using the IRR rule the project should be
17. 1 · 16. | · 15.
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