The sales manager has a new estimate for the sale of the Classic Thunderbirds in Problem 19.
Question:
The sales manager has a new estimate for the sale of the Classic Thunderbirds in Problem 19. The annual sales volume will be as follows:
Year 1: 240
Year 2: 280
Year 3: 340
Year 4: 360
Year 5: 280.
Rework the cash flows for operating cash flows with these new sales estimates and find the internal rate of return for the project using the incremental cash flows.
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
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Operating Cash Flows are Annual Sales Year 1 240 27000 6480000 Year 2 280 27000 7560000 Year 3 340 2...View the full answer
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