Which is the internal rate of return for this investment

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Problem

Janion Carpet Co. (Janion) was approached by a potential new customer about supplying carpets as part of a new four-year contract. Because the carpets are larger than any that Janion currently manufactures, the company will have to upgrade its current machines at a cost of $440,000. If the proposal is accepted, Janion will have additional annual revenues of $325,000 for each of the next four years. Cost of goods sold is 36% of sales. The company pays income tax at 27%. CCA and salvage value can be ignored. Get the instant assignment help. Which is the internal rate of return (IRR) for this investment?

Reference no: EM133901438

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