You wish to evaluate a project requiring an initial investment of $59,500 and having a useful life
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You wish to evaluate a project requiring an initial investment of $59,500 and having a useful life of 7 years. What minimum amount of annual cash inflow do you need if your firm has an 8.7% cost of capital? If the project is forecast to earn $11,400 per year over the 7 years, what is its IRR? Is the project acceptable?
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To find the minimum annual cash inflows in Excel use the PMT command with this syntax PMTdiscount ...View the full answer
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Related Book For
Principles of Managerial Finance
ISBN: 978-0134476315
15th edition
Authors: Chad J. Zutter, Scott B. Smart
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