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The Sisyphean Company is planning on investing in a new project. This will involve the purchase...

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $ 350 comma 000. The Sisyphean Company expects cash inflows from this project as detailed​ below: Year 1 Year 2 Year 3 Year 4 $ 150 comma 850 $ 150 comma 850 $ 150 comma 850 $ 150 comma 850 The appropriate discount rate for this project is 15​%. The internal rate of return​ (IRR) for this project is closest​ to: A. 20​% B. 26​% C. 30​% D. 16​%

Solutions

Expert Solution

"Therefore, the Internal rate of return​ (IRR) for this project is closest​ to (B). 26%"


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