What is the internal rate of return of this project

Reference no: EM13265365

DYI Construction Co. is considering a new inventory system that will cost $1.25 million. The system is expected to generate positive cash flows over the next six years in the amounts of $400,000 in year one, $325,000 per year during years two through four, $150,000 in year five, and $180,000 in year six. DYI's required rate of return is 8%. What is the internal rate of return of this project?

Answer

6.56%
9.93%
10.64%
11.36%

Reference no: EM13265365

Questions Cloud

Discuss the evidence of character development : Discuss the evidence of character development - demonstrate the character's development and traits

Determine the mass of the grapes : A bunch of grapes is placed in a spring scale at a supermarket. The grapes oscillate up and down with a period of 0.65 s, What is the mass of the grapes

How does a dutch auction work : How does a Dutch auction work? Not more than 4 short sentences.

What was the 1970''s evolution of these approaches : Electronic Music began to develop in the 1940's with advances in technology. What were the two approaches to Electronic music in the 40's and 50's, and from which country did each originate? What was the 1970's evolution of these approaches?

What is the internal rate of return of this project : DYI's required rate of return is 8%. What is the internal rate of return of this project?

Where is the image formed by the objective lens : An insect 1.3mm tall is placed 1.0mm beyond the focal point of the objective lens of a compound microscope. Where is the image formed by the objective lens

Determine the voltage gain av : If R1 = 220 k Ohms , R2 = 56 k Ohms, Rc = 6.8 k Ohms, RE = 2.2 k Ohms, B= 180, rO = 50 k Ohms, C1 = C2 = 10 uF, CE = 100 uF, and Vcc = 20 V, determine the voltage gain AV.

What is the eps before and after the repurchase : Your firm has 25 million shares outstanding and they trade at $ 30. Net Income this year will be $ 3 million. You have $ 15 million to use and you plan to buy-back shares.

Develop throughout the twentieth century : What three early twentieth century musical forms were original to America? List and explain the three forms, and if they continued to develop throughout the twentieth century.

User Account

All Pages