a. Determine the IRR of this project. Is it acceptable? b. Assuming that the cash inflows continue to be $45,000 per year, how many additional years would the flows have to continue to make the project acceptable (that is, to make IRR of 14%)? c. With the given life, an initial investment of $309,600, and cost of capital of 14%, what is the minimum annual cash inflow the investment would have to provide in order for this project to have an make sense for Oak's shareholders? a. The project's IRR is %. (Round to two decimal places.) Is the project acceptable? (Select the best answer below.) O A. No O B. Yes b. Assuming that the cash inflows continue to be $45,000 per year, the number of additional years the flows would have to continue to make the project acceptable at the 14% discount rate is additional years. (Round to two decimal places.) c. With the given life, initial investment, and cost of capital, the minimum annual cash inflow that the firm should accept is $ (Round to the nearest cent.)
a. Determine the IRR of this project. Is it acceptable? b. Assuming that the cash inflows continue to be $45,000 per year, how many additional years would the flows have to continue to make the project acceptable (that is, to make IRR of 14%)? c. With the given life, an initial investment of $309,600, and cost of capital of 14%, what is the minimum annual cash inflow the investment would have to provide in order for this project to have an make sense for Oak's shareholders? a. The project's IRR is %. (Round to two decimal places.) Is the project acceptable? (Select the best answer below.) O A. No O B. Yes b. Assuming that the cash inflows continue to be $45,000 per year, the number of additional years the flows would have to continue to make the project acceptable at the 14% discount rate is additional years. (Round to two decimal places.) c. With the given life, initial investment, and cost of capital, the minimum annual cash inflow that the firm should accept is $ (Round to the nearest cent.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 5BE
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