A company is considering a five-year project.It plans to invest $80,000 now and it forecasts cash inflows for each year of $22,857.The company requires a hurdle rate of 12%.Calculate the internal rate of return to determine whether it should accept this project.Selected factors for a present value of an annuity of 1 for five years are shown below:
$\begin{array}{lc}
\underline {\text { Interest }} &\underline {\text { Present Value of an Annuity of 1 }}\
\underline{\text { Rate }}& \underline{\text { Factor }} \
{10 \%} &{3.7908}\
12 \% & 3.6048 \
14 \% & 34331
\end{array}$

Question

A company is considering a five-year project.It plans to invest $80,000 now and it forecasts cash inflows for each year of $22,857.The company requires a hurdle rate of 12%.Calculate the internal rate of return to determine whether it should accept this project.Selected factors for a present value of an annuity of 1 for five years are shown below:
 $\begin{array}{lc}
\underline {\text {  Interest  }} &\underline {\text { Present Value of an Annuity of 1 }}\
 \underline{\text { Rate }}&  \underline{\text { Factor }} \
{10 \%} &{3.7908}\
12 \% & 3.6048 \
14 \% & 34331
\end{array}$

Quizplus · Accepted Answer

The Answer of A company is considering a five-year project.It plans to invest $80,000 now and it forecasts cash inflows for each year of $22,857.The company requires a hurdle rate of 12%.Calculate the internal rate of return to determine whether it should accept this project.Selected factors for a present value of an annuity of 1 for five years are shown below:
 $\begin{array}{lc}
\underline {\text {  Interest  }} &\underline {\text { Present Value of an Annuity of 1 }}\
 \underline{\text { Rate }}&  \underline{\text { Factor }} \
{10 \%} &{3.7908}\
12 \% & 3.6048 \
14 \% & 34331
\end{array}$

A Company Is Considering a Five-Year Project