Casa Del Sol Property Development Company is borrowing $1,875,000, it expects to pay back $415,350...
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Casa Del Sol Property Development Company is borrowing $1,875,000, it expects to pay back $415,350 for the next seven years. What is the internal rate of return? Should the firm borrow if r-12 percent? 12.35 percent, yes because IRRE 12:35 percentand becamise IRRY 11.83 percent yes because IRRAT 1183 percent, 10 bigcause IRRHH 13.83 percent o ecause IRRE It will cost $3,000 to acquire a small ice cream cart. Cart sales are expected to be $1,400 a year for three years. After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart? Will you accept the project if the benchmark payback period is 2 years? 0.83 years, yes, because it is less than 2 years 1.14 years yes, because it is less than 2 years I 214 years.no, because it is greater than 2 years. 2.14 years, yes, because it is greater than 2 years. 1.14 years no, because it is less than 2 years
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