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8. Middlefield Motors is evaluating a project that would require an initial investment of...

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Finance

8.

Middlefield Motors is evaluating a project that would require an initial investment of 88,203 dollars today. The project is expected to produce annual cash flows of 7,466 dollars each year forever with the first annual cash flow expected in 1 year. The NPV of the project is -225 dollars. What is the IRR of the project? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

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