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https://edugonwileyplus.com/edu nl11Patrots Sports Radic N dar z DComLinks D Google Docs yi y (144) Teter Return to Blackboard Kimmel, Survey of Accounting, 1e with Job Order Costing e ytem ignment BACK Do It Review 16-4 Culver Company is considering a long-term investment project called ZIP. ZIP will require an investment of $123,600. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $82,400, and annual cash outflows would increase by $41,200. The company's required rate of return is 12%6. ble. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, eg, S%.) Internal rate of return on this project is between Determine whether this project should be accepted? The project %and be accepted. Question Attempts: 0 of s used SAVE FOR LATE SUBHET ANSWERExplanation / Answer
By sustituting 12% we get positive NPV and 13% we have negative NPV so IRR shall be between 12 and 13
Because we see IRR is going to be marginally more then 12% cost of capital
Workings....................
NPV (12%)
NPV (13%)
Internal rate of return is between 12 % and 13 %Related Questions
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