Tobert Inc. is considering the purchase of a new piece of equipment. The cost of the equipment would be $53,632 and the company expects the equipment would generate annual cash flows of $16,000 for the next five years. The company's hurdle rate is 12%. Compute the internal rate of return (IRR) on this investment. [Enter your answer in the form of a decimal, not a percentage].
Tobert Inc. is considering the purchase of a new piece of equipment. The cost of the equipment would be $53,632 and the company expects the equipment would generate annual cash flows of $16,000 for the next five years. The company's hurdle rate is 12%. Compute the internal rate of return (IRR) on this investment. [Enter your answer in the form of a decimal, not a percentage].
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...
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