Wayne Company is considering a long-term investment project cll useful life of 4 years and no salvage value. Annual cash inflows would increase by $85,300, and annual cash outflows would increase by $47,300. The company's required rate of return is 12%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, eg. 15%) % and %. Internal rate of return on this project is between Determine whether this project should be accepted? The project should 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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10
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $112.860. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $85,300, and annual cash outflows would increase by
$47,300. The company's required rate of return is 12%. Click here to view PV table.
11
14
15
Calculate the internal rate of return on this project. (Round answers to O decimal places, eg. 15%)
16
17
18
19
20
Internal rate of return on this project is between
% and
%.
Determine whether this project should be accepted?
ABLE-
The project
should
be accepted.
(n)
tyment
Transcribed Image Text:10 Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $112.860. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $85,300, and annual cash outflows would increase by $47,300. The company's required rate of return is 12%. Click here to view PV table. 11 14 15 Calculate the internal rate of return on this project. (Round answers to O decimal places, eg. 15%) 16 17 18 19 20 Internal rate of return on this project is between % and %. Determine whether this project should be accepted? ABLE- The project should be accepted. (n) tyment
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