Question: As well as question B and C: B) Compute the internal rate of return on this project. C) Should Santana invest in this project? Santana
Santana Company is conisidering investing in a project that will cost $151,000 and have no salvage value at the end of its 5 -year life. It is estimated that the project will generate annual cash inflows of $40,000 each year. The company requires a 9% rate of return and uses the following compound interest table: (a) Compute the net present value and the profitability index of the project. (Round profitability index to 2 decimal places, es. 15.25.) Net present value Profitability index Attempts: 0 of 1 used
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
