Perez Company is considering an investment of $21,530 that provides net cash flows of $6,500 annually for four years (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below.

Perez Company is considering an investment of $21,530 that provides net cash flows of $6,500 annually for four years (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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