The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $375,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $173,111 $173,111 $173,111 $173,111 The appropriate discount rate for this project is 18%. The internal rate of return (IRR) for this project is closest to: A. 30% B. 35% C. 23% D. 18%
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $375,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $173,111 $173,111 $173,111 $173,111 The appropriate discount rate for this project is 18%. The internal rate of return (IRR) for this project is closest to: A. 30% B. 35% C. 23% D. 18%
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...
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