A project requires an immediate investment of $10,000 for the purchase and installation of equipment.  The project is expected to generate after-tax cashflows in the amount of $3,000 at the end of each of the next five years.  What is the IRR?  [Select the best answer, please.]  11 %   13 %   15 %   18 %   20 %

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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A project requires an immediate investment of $10,000 for the purchase and installation of equipment.  The project is expected to generate after-tax cashflows in the amount of $3,000 at the end of each of the next five years.  What is the IRR[Select the best answer, please.]

  1.  11 %
  2.   13 %
  3.   15 %
  4.   18 %
  5.   20 %
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