Business, 19.12.2019 01:31 sana20

Thom corporation is considering an investment opportunity with the following expected net cash inflows:

year 1, $ 230,000; year 2, $ 370,000; year 3, $ 360,000.

the company uses a discount rate of 13%, and the initial cost of the investment is $ 720,000.

present value of $1:
| 10% | 11% | 12% | 13% | 14% | 15%
1 | 0.909 | 0.901 | 0.893 | 0.885 | 0.877 | 0.870
2 | 0.826 | 0.812 | 0.797 | 0.783 | 0.769 | 0.756
3 | 0.751 | 0.731 | 0.712 | 0.693 | 0.675 | 0.658
4 | 0.683 | 0.659 | 0.636 | 0.613 | 0.592 | 0.572
5 | 0.621 | 0.593 | 0.567 | 0.543 | 0.519 | 0.497

the irr of the project will be
a. between 13% and 14%
b. less than 13%
c. between 14% and 15%
d. more than 13%

Answers: 1

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