Joshlm8471 Joshlm8471
  • 09-08-2019
  • Business
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Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The firm expects the project to generate annual cash flows of $7 million over the next five years. Its cost of capital is 18 percent. What is the internal rate of return on this project? (A) 17%(B) 18%(C) 19%(D) 20%

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bdfinney102p4vlx8
bdfinney102p4vlx8 bdfinney102p4vlx8
  • 09-08-2019
It would be choice B 18%.
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