Find what is the internal rate of return of the investment

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Reference no: EM131989111

Problem

Tanya Sinclair owner of Sinclair Fine wine, is considering investing $192, 704 in a temperature-controlled wine storage room. She plans to rent space to customers and expects to generate $48, 206 annually (rental charges less miscellaneous expenses other than depreciation).

Assuming Tanya wishes to evaluate the project with a 6-vear time horizon, what is the internal rate of return of the Investment?

Should Tanya make the investment if her required rate of return is 11.0 percent?

Reference no: EM131989111

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