b. Gilford Mild Company is considering new product line to supplement its range line. It...
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b. Gilford Mild Company is considering new product line to supplement its range line. It is anticipated that the new line will involve cash investment of Tk. 500,000 at the initial time period and Tk. 400,000 in the 1st year. After-tax cash inflows of Tk. 300,000 are expected in the 2nd year and Tk. 200,000 each year thereafter through the 11th year. While the product line might be viable after the 11th year, the company prefers to be conservative and calculates at that time. Determine IRR. Is the project acceptable if hurdle rate is 18 percent?
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