Whispering Winds Corporation is considering investing in a new facility. The estimated cost of the facility is $3,551,000. It will be used for 12 years, then sold for $836,000. The facility will generate annual cash inflows of $499,000 and will need new annual cash outflows of $125,000. The company has a required rate of return of 5%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted. (Round answer to 0 decimal places, e.g. 13%) Internal rate of return The project should be %

Whispering Winds Corporation is considering investing in a new facility. The estimated cost of the facility is $3,551,000. It will be used for 12 years, then sold for $836,000. The facility will generate annual cash inflows of $499,000 and will need new annual cash outflows of $125,000. The company has a required rate of return of 5%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted. (Round answer to 0 decimal places, e.g. 13%) Internal rate of return The project should be %

Name: Whispering Winds Corporation is considering investing in a new facili
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Description: Whispering Winds Corporation is considering investing in a new facility. The estimated cost of the facility is $3,551,000. It will be usedfor 12 years, then sold for $836,000. The facility will generate annual cash inflows of $499,000 and will need

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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