Question

Viera Corporation is considering investing in a new facility. The estimated cost of the facility is $1,825,826. It will be used for 12 years, then sold for $714,200. The facility will generate annual cash inflows of $395.800 and will need new annual cash outflows of $152,300. The company has a required rate of return of 7%. Click here to view table Calculate the internal rate of return on this project. (Round answer to decimal place, e.. 125.) Internal rate of return is Whether the project should be accepted. The project Loud be acce

Answer 1

2 4 5 6 A B ДА 1 Year CF 1 Year CF 0 $ (1.825.826.00)|| 2 0 -1825826 3 1 $ 234,500.00 3 1 =386800-152300 2 $ 234,500.00 4 2 =386800-152300 3 $ 234,500.00 5 3 1=386800-152300 4 $ 234,500.00 | 6 4 =386800-152300 7 5 $ 234,500.00 7 5 =386800-152300 8 6 $ 234,500.00 8 6 =386800-152300 7 $ 234,500.00 | 97 =386800-152300 10 8 $ 234,500.00 | 10 8 =386800-152300 11 9 $ 234,500.00 11 9 =386800-152300 12 10 $ 234.500.00 || 12 10 =386800-152300 13 11 $ 234,500.00 13 11 =386800-152300 14 12 $ 948,700.00 14 12 l=386800-152300+714200 15 IRR 10% 15 IRR EIRR(B2:B14) 9