Homework Answers
Project requires initial investment of $60444 today and expected to produce annual cash flows of $6270 each year forever with first cash flow expected in 1 year. Net present value of project is $196.
Now we have to find internal rate of return (IRR) for the project. Internal rate of return (IRR) of project is rate at which net present value (NPV) is 0
Internal rate of return of project is 0.1037 (10.37%)
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Middlefield Motors is evaluating a project that would require an initial investment of 60,444 dollars today....
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