Why will saras project be considered for funding

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Reference no: EM131951418

Problem

Internal Rate of Return II Archway Industries requires projects to provide an internal rate of return of at least 4% to be considered for funding. Sara's proposed project requires an initial investment of +350,000 for new equipment plus +24,000 annually for operating costs (years 1 through 12). The project is expected to generate revenues of +14,000 the first year, +170,000 for years 2 through 6, and +100,000 for years 7 through 12. At that time, the equipment will be scrapped at an estimated cost of +400,000. Will Sara's project be considered for funding?

Reference no: EM131951418

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