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What is the internal rate of return of this investment

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Reference no: EM133525450

Perez Company is considering an investment of $27,336 that provides net cash flows of $9,000 annually for four years.

Question (a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)

Question (b) The hurdle rate is 10%. Should the company invest in this project on the basis of internal rate of return?

 

Reference no: EM133525450

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