Question: DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the net present value of this project?
| $104,089 | ||
| $100,328 | ||
| $96,320 | ||
| $87,417 |
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the internal rate of return of this project?
| 10.87% | ||
| 11.57% | ||
| 13.68% | ||
| 15.13% |
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