Management of a confectioner is considering purchasing a new jelly bean-making machine at a cost of $340,022. They project that the cash flows from this investment will be $126,710 for the next seven years. If the appropriate discount rate is 14 percent, what is the IRR that management can expect on this project? (Do not round discount factors. Round

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5EB: A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment...
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Management of a confectioner is considering purchasing a new jelly bean-making machine at a cost of $340,022. They project that the cash flows from this investment will be $126,710 for the next seven years. If the appropriate discount rate is 14 percent, what is the IRR that management can expect on this project? (Do not round discount factors. Round other intermediate calculations to 0 decimal places e.g. 15 and final answer to 2 decimal places, e.g. 5.25%.)

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