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Minimum internal rate of return

Blue Fin Inc. requires all capital investments to generate a minimum internal rate of return of 15%. The company is currently considering an investment that is expected to generate annual cash inflows of $10,000 for 6 years. The cost of this investment is $30,000.

Required: Would you recommend the company make this investment? Why or why not? Show computations and ignore income taxes.

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Managerial Accounting
Blue Fin Inc. requires all capital investments to generate a
of 15%. The ...

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Solution helps in estimating minimum internal rate of return

$2.19