Wh the given life initial investment and cost of capital


Oak enterprises accepts projects earning more than the firms 11% cost of capital. Oak is currently considering a 13 year project that provides annual cash inflows of 45,000 and requires an initial investment of 389,100 (all amts are after taxes)

1) The projects IRR is ....% (round to two decimal places)

2) Is this project acceptable? Yes or no

3) Assuming that the cash inflows continue to 45000 per year , the number of additional years the flows would have to continue to make the project acceptable at the 11% discount rate is ..... additional years

4) With the given life, initial investment and cost of capital , the minimum annual cash inflow that the firm should accept is .....( round to nearest cent)

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Wh the given life initial investment and cost of capital
Reference No:- TGS01362840

Expected delivery within 24 Hours