A company is considering a 5-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:

Question

A company is considering a 5-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:
A company is considering a 5-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:

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The Answer of A company is considering a 5-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:

A Company Is Considering a 5-Year Project