Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to O decimal places, eg. 15%) Internal rate of return on this project is between Determine whether this project should be accepted? The project should be accepted. 12 % and 14 %

Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to O decimal places, eg. 15%) Internal rate of return on this project is between Determine whether this project should be accepted? The project should be accepted. 12 % and 14 %

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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Blossom Company is considering a long-term investment project called ZIP, ZIP will require an investment of $126,225. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $85,000, and annual cash outflows would increase by $42,500. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to O decimal places, e.g. 15%.) Internal rate of return on this project is between Determine whether this project should be accepted? The project be accepted. % and %.
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view the fattor table. Calculate the internal rate of return on this project. (Round answers to O decimal places, eg 15%) Internal rate of return on this project is between 12 % and 13 %. Determine whether this project should be accepted? The project should be accepted. eTextbook and Media