What is the internal rate of return of the investment

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Question - Tanya Sinclair, owner of Cato Fine Wine, is considering investing $250,043 in a temperature-controlled wine storage room. She plans to rent space to customers and expects to generate $64,300 annually (rental charges less miscellaneous expenses other than depreciation).

Assuming Tanya wishes to evaluate the project with a 6-year time horizon, what is the internal rate of return of the investment?

Should Tanya make the investment if her required rate of return is 11 percent?

Reference no: EM132743414

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