Problem
Hathaway, Inc., a resort company, is refurbishing one of its hotels at a cost of $7,800,000. Management expects that this will lead to additional cash flows of $1,800,000 for the next six years.
Required:
Question: What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Hathway go ahead with this project?
Note: Please provide full description.