Zoomit Corporation has a capital investment opportunity that will cost $220,000. The cash inflows from year 1through year 10 will be $40,000 each year. The firm's required rate of return is 9%. What is the IRR for this project?O 15.1%18.6%12.66%O 21.42%O 14.41%

Zoomit corporation Year Cash flow 0 -220000 1 40000 2 40000 3 40000 4 40000 5 40000…

Answered: Zoomit Corporation has a capital…

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

Problem 1PS

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Zoomit Corporation has a capital investment opportunity that will cost $220,000. The cash inflows from year 1 through year 10 will be $40,000 each year. The firm's required rate of return is 9%. What is the IRR for this project? O 15.1% 18.6% 12.66% O 21.42% O 14.41%