Determine whether this project should be accepted

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Reference no: EM132029612

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $121,800. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $38,000. The company’s required rate of return is 12%. Click here to view PV table.

Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%.)

Internal rate of return on this project is between _____ and ______

Determine whether this project should be accepted?

The project ______ be accepted

Reference no: EM132029612

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