Pharoah Corporation is considering investing in a new facility. The estimated cost of the facility is $1,991,950. It will be used for 12 years, then sold for $715,000. The facility will generate annual cash inflows of $380,000 and will need new annual cash outflows of $153,400. The company has a required rate of return of 7%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answer to O decimal place, e.g. 13%.) Internal rate of return is Whether the project should be accepted. The project should V be accepted. %

Pharoah Corporation is considering investing in a new facility. The estimated cost of the facility is $1,991,950. It will be used for 12 years, then sold for $715,000. The facility will generate annual cash inflows of $380,000 and will need new annual cash outflows of $153,400. The company has a required rate of return of 7%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answer to O decimal place, e.g. 13%.) Internal rate of return is Whether the project should be accepted. The project should V be accepted. %

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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