Assume Polaris invested $ 2 12 million to expand its manufacturing capacity Assume that these assets have a ten year life, and that Polaris requires a 10 internal rate of return on these assets Required What is the amount of annual cash flows that Polaris must earn from these projects to have a 10 ...

The internal rate of return given here as 10 is the rat ...

Assume Polaris invested $ 2.12 million to expand its manufacturing capacity. Assume that these assets have a

Question:

Assume Polaris invested $ 2.12 million to expand its manufacturing capacity. Assume that these assets have a ten-year life, and that Polaris requires a 10% on these assets.

Required
What is the amount of annual cash flows that Polaris must earn from these projects to have a 10% (Identify the ten-period, 10% factor from the present value of an table, and then divide $ 2.12 million by this factor to get the annual cash flows necessary.)

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... Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...