IRR; sensitivity analysis

White Sands Resort is considering adding a new dock to accommodate large yachts. The dock would cost $$700,000$ and would generate $$144,000$ annually in new cash inflows. Its expected life would be eight years, with no salvage value. The resort$$s cost of capital and discount rate are $7$ percent.

a$.$ Calculate the internal rate of return for the proposed dock addition.

Note: Round to the nearest whole percent.

Answer

$\%$

b$.$ Based on your answer to $($a$),$ should the resort add the new dock? Answer

c$.$ How much annual cash inflow would be required for the project to be minimally acceptable?

Note: Round your answer to the nearest whole dollar.

$Answer