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A company is considering a 5-year project. It plans to invest $62,000 now and it...

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Accounting

A company is considering a 5-year project. It plans to invest $62,000 now and it forecasts cash flows for each year of $16,200. The company requires a hurdle rate of 12%. Using internal rate of return, should the company accept this project? Selected factors for a present value of an annuity of 1 for five years are shown below:

Interest rate Present value of an annuity of 1 factor
10% 3.7908
12% 3.6048
14% 3.4331

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