Perez Company is considering an investment of $21,530 that provides net cash flows of $6,500 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Perez Company is considering an investment of $21,530 that provides net cash flows of $6,500 annually for four years.
(a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from
the tables provided. Round your present value factor to 4 decimals.)
(b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return?
Complete this question by entering your answers in the tabs below.
Required A Required B
What is the internal rate of return of this investment?
Present value factor
Internal rate of return
<Required A
Required B >
Transcribed Image Text:Perez Company is considering an investment of $21,530 that provides net cash flows of $6,500 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return <Required A Required B >
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