Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. payback period, irr, and minimum cash flows the ma

Payback Period, IRR, and Minimum Cash Flows The management of Mohawk Limited is currently evaluating...

80.2K

Verified Solution

Question

Accounting

image

Payback Period, IRR, and Minimum Cash Flows The management of Mohawk Limited is currently evaluating the following investment proposal: Time 0 Year 1 Year 2 Year 3 Year 4 Initial investment 150,000 Net operating cash inflows $50,000 $50,000 $50,000 $50,000 (a) Determine the proposal's payback period. years (b) Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table approach.) 12.59 x% (c) Given the amount of the initial investment, determine the minimum annual net cash inflows required to obtain an internal rate of return of 16 percent. Round the answer to the nearest dollar. 53,606 V Check

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students