Academic Publishing is trying to decide which of two books to publish. The larger book will cost

Question:

Academic Publishing is trying to decide which of two books to publish. The larger book will cost $100,000 to publish and print. Sales are expected to produce an annual profit of $32,000 for five years. The smaller book will cost $60,000 to publish and print, and should generate an annual profit of $20,000 for five years.
a. Calculate the on each book. On the basis of their IRRs, which book should be published?
b. Which book should be published if the firm’s is 17%?
c. Which book should be published if the firm’s is 14%?
Internal Rate of Return
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... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...