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GTO Incorporated is considering an investment costing $214,170 that results in net cash flows of $30,000 annually for 11 years. (PV of
$1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
(a) What is the internal rate of return of this investment?
(b) The hurdle rate is 9.5%. Should the company invest in this project on the basis of internal rate of return?
a. Internal rate of return
b. Should the company invest in this project on the basis of internal rate of return?
%