Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to O decimal places, eg. 15%) Internal rate of return on this project is between Determine whether this project should be accepted? The project should be accepted. 12 % and 14 %

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by
$40,000. The company's required rate of return is 12%.
Click here to view the factor table.
Calculate the internal rate of return on this project. (Round answers to 0 decimal places, eg. 15%)
Internal rate of return on this project is between
Determine whether this project should be accepted?
The project should
eTextbook and Media
be accepted.
12 % and
14
%
Transcribed Image Text:Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, eg. 15%) Internal rate of return on this project is between Determine whether this project should be accepted? The project should eTextbook and Media be accepted. 12 % and 14 %
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