loader  Loading... Please wait...

Question(s) / Instruction(s):

Sushi, Inc. needs to purchase a new machine costing $2.08 million. Management is estimating the machine will generate cash inflows of $396,000 for two years and $300,000 for the following seven years. If management requires a minimum 8 percent rate of return, should the firm purchase this particular machine? Why or why not?                                                         

A.            yes; because the IRR is 10.38 percent

B.            no; because the IRR is 7.57 percent

C.            no; because the IRR is .68 percent

D.            yes; because the IRR is 8.47 percent

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$1.79

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494