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What is the internal rate of return of the investment

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Reference no: EM132755222

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? (Ignore taxes.)

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

Reference no: EM132755222

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