Should hathaway go ahead with this project

Reference no: EM13279080

Hathaway Inc, a resort company, is refurbishing one of its hotels at a cost of $7.8 millios. Managements expects that this will lead to additional cash flows of $1.8 million for the next 6 years. What is the IRR of the project? If appropriate cost of capital is 12 percent, should Hathaway go ahead with this project?

Reference no: EM13279080

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