Chaquille's K-House, Inc. made an investment in a project with an initial cost of $11,064,450. This investment was for 8 years and had no residual value. The company expects to receive yearly net cash inflows of $2,603,400. Management is requiring a return of 12% on the investment.(Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. What is the IRR for the project? Is this a good investment?Inital Investment / Annual Net Cash Flow = Annuity PV FactorPresent value factor of an annuity of $1-n1 − (1 + r) ¯”Annuity Factor12% 8Rate Periods Annuity Factor14% 816% 817% 81rInitial InvestmentNPV of the ProjectIII112. Use the rate closest to the calculated Annuity PV factor that creates a positive NPV., where r = rate, and n = # of periods.IChaquille's K-House, Inc. Net Cash Inflow Annuity PV Factor Present ValuePV of annuity

Initial cost = $11,064,450Period = 8 yearsResidual value = $0Expected yearly net cash inflows =…

Chaquille's K-House, Inc. made an investment in a project with an initial cost of $11,064,450. This investment was for 8 years and had no residual value. The company expects to receive yearly net cash inflows of $2,603,400. Management is requiring a return of 12% on the investment. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).

Chaquille's K-House, Inc. made an investment in a project with an initial cost of $11,064,450. This investment was for 8 years and had no residual value. The company expects to receive yearly net cash inflows of $2,603,400. Management is requiring a return of 12% on the investment. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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