investment costs $21,259 and will generate cash flow of $7,000 annually for four years. The firm’s cost of capital is 10 percent. Use Appendix D to answer the questions. What is the investment’s internal rate of return? Round your answer to the nearest whole number. % Based on the internal rate of return, should the firm make the investment? The investment made. What is the investment’s net present value? Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. $ Based on the net present value, should the firm make the investment? The investment made.
investment costs $21,259 and will generate cash flow of $7,000 annually for four years. The firm’s cost of capital is 10 percent. Use Appendix D to answer the questions. What is the investment’s internal rate of return? Round your answer to the nearest whole number. % Based on the internal rate of return, should the firm make the investment? The investment made. What is the investment’s net present value? Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. $ Based on the net present value, should the firm make the investment? The investment made.
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 7PROB
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Problem 22-01 An investment costs $21,259 and will generate cash flow of $7,000 annually for four years. The firm’s cost of capital is 10 percent. Use Appendix D to answer the questions.
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