Solved: Internal rate of return methods of capital budgeting, Finance Basics

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Internal rate of return methods of capital budgeting

Question: An investment costs $10,000 and offers annual cash inflow of $1,770 for ten years. According to both the net present value and internal rate of return methods of capital budgeting, should the firm make this investment if its cost of capital is (a) 10 percent or (b) 14 percent?

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Finance Basics: Internal rate of return methods of capital budgeting

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