XYZ Corp. is considering whether to invest in a new machine for $100,000. The machine has an
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XYZ Corp. is considering whether to invest in a new machine for $100,000. The machine has an expected life of 10 years, with no salvage value at the end. The company expects to generate additional cash inflows of $20,000 per year for the next 10 years if they invest in the machine. Calculate the Internal Rate of Return (IRR) for the project and determine whether the company should invest in it, given that the cost of capital is 10%.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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