Pari Corporation is planning a 20 year project with an initial investment of $10 million. The project will have $50,000 cash outflows per year in years 1-4; $300,000 cash inflows in years 5-15, and $15,000 cash inflows in years 16-20. Determine the projects rate of return. -9.81% -10.57% -5.51% 10.92%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Pari Corporation is planning a 20 year
project with an initial investment of $10
million. The project will have $50,000
cash outflows per year in years 1-4;
$300,000 cash inflows in years 5-15, and
$15,000 cash inflows in years 16-20.
Determine the projects rate of return.
-9.81%
-10.57%
-5.51%
10.92%
Transcribed Image Text:Pari Corporation is planning a 20 year project with an initial investment of $10 million. The project will have $50,000 cash outflows per year in years 1-4; $300,000 cash inflows in years 5-15, and $15,000 cash inflows in years 16-20. Determine the projects rate of return. -9.81% -10.57% -5.51% 10.92%
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