Motel Corporation is analyzing a capital expenditure that will involve a cash outlay of $208,240. Estimated cash
Fantastic news! We've Found the answer you've been seeking!
Question:
Motel Corporation is analyzing a capital expenditure that will involve a cash outlay of $208,240. Estimated cash flows are expected to be $40,000 annually for seven years. The present value factors for an annuity of $1 for 7 years at interest of 6%, 8%, 10%, and 12% are 5.582, 5.206, 4.868, and 4.564, respectively. The internal rate of return for this investment is:
a. 8%
b. 12%
c. 6%
d. 10%
Related Book For
Foundations of Financial Management
ISBN: 978-0077454432
14th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Posted Date: