Your answer is partially correct. Sunland Company is considering a long-term investment project called ZIP. ZIP will require an investment of $123,600. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $82,400, and annual cash outflows would increase by $41,200. 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 whole number (e.g., 15%).) Internal rate of return on this project is between 3 % and 1539 % Determine whether this project should be accepted? The project should be accepted.
Your answer is partially correct. Sunland Company is considering a long-term investment project called ZIP. ZIP will require an investment of $123,600. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $82,400, and annual cash outflows would increase by $41,200. 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 whole number (e.g., 15%).) Internal rate of return on this project is between 3 % and 1539 % Determine whether this project should be accepted? The project should be accepted.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Your answer is partially correct.
Sunland Company is considering a long-term investment project called ZIP. ZIP will require an investment of $123,600. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $82,400, and annual cash outflows would increase by
$41,200. 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 whole number (e.g., 15%).)
Internal rate of return on this project is between
3 % and
1539
%
Determine whether this project should be accepted?
The project should
be accepted.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cae5622-35ba-4573-b3a9-59028558a74f%2Ff00f38dd-228a-414b-bb22-0aa2c3457f10%2Fxw10b6w_processed.png&w=3840&q=75)
Transcribed Image Text:Your answer is partially correct.
Sunland Company is considering a long-term investment project called ZIP. ZIP will require an investment of $123,600. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $82,400, and annual cash outflows would increase by
$41,200. 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 whole number (e.g., 15%).)
Internal rate of return on this project is between
3 % and
1539
%
Determine whether this project should be accepted?
The project should
be accepted.
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