Tacoma Taco Cart Inc. is looking to purchase a new taco cart to expand operations, at a cost of $109,000. Tacoma desires an internal rate of return on this new cart of 11% and estimates it will have a useful life of 5 years. Tacoma uses the Present Value of an Annuity of $1 table to determine an annuity factor of 3.6959. Given these parameters, how much yearly cash flow would this taco cart need to produce? Explain.

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The internal rate of return IRR is a discount rate that makes the net present value NPV of all cash ... View the full answer