Carte Blanco Company is evaluating an investment of $1,000,000 which will yield cash flows of $257,000 per year for 5 years with no residual value.
If Carte Blanco has a hurdle rate of 10%, they should accept the investment because its internal rate of return is higher than 10%.

Question

Carte Blanco Company is evaluating an investment of $1,000,000 which will yield cash flows of $257,000 per year for 5 years with no residual value.
  If Carte Blanco has a hurdle rate of 10%, they should accept the investment because its internal rate of return is higher than 10%.

Quizplus · Accepted Answer

The Answer of Carte Blanco Company is evaluating an investment of $1,000,000 which will yield cash flows of $257,000 per year for 5 years with no residual value.
  If Carte Blanco has a hurdle rate of 10%, they should accept the investment because its internal rate of return is higher than 10%.

Carte Blanco Company Is Evaluating an Investment of $1,000,000 Which