Answer a and b GTO Incorporated is considering an investment costing $397,150 that results in net cash

Answer a and b

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GTO Incorporated is considering an investment costing $397,150 that results in net cash flows of $50,000 annually for 12 years. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) (a) What is the internal rate of return of this investment? (b) The hurdle rate is 9.0%. Should the company invest in this project on the basis of internal rate of return? 30 a. Internal rate of return aces b. Should the company invest in this project on the basis of internal rate of return? % GTO Incorporated is considering an investment costing $397,150 that results in net cash flows of $50,000 annually for 12 years. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) (a) What is the internal rate of return of this investment? (b) The hurdle rate is 9.0%. Should the company invest in this project on the basis of internal rate of return? 30 a. Internal rate of return aces b. Should the company invest in this project on the basis of internal rate of return? %

Answer rating: 100% (QA)

First lets compute the investments IRR using the trialanderror method mentioned earlie... View the full answer