The appropriate cost of capital

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Hathaway, Inc., a resort company, is refurbishing one of its hotels at a cost of $7,424,321. Management expects that this will lead to additional cash flows of $1,768,100 for the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Hathway go ahead with this project?

Reference no: EM13883480

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