80.2K

Verified Solution

Link Copied!

Nancy has been charged with evaluating whether WrenMart should buy and operate its own fleet of gas tanker trucks or renew its five-year gas delivery contract with Fuel Delivery Corp. WrenMart's estimated cost of capital, appropriate for this project, is 8.30% per year. The project's free cash flows are estimated as follows: Help Nancy by computing the IRR of the project. Instructions: - Include all symbols and punctuation: 7500 \$1,500 - Never spell out the unit: 7.4 months - Round long decimals to the nearest hundredth: 20.334120.33 - If the answer is a percentage, convert to percentage form before rounding: 0.03948 3.948%3.95% Nancy has been charged with evaluating whether WrenMart should buy and operate its own fleet of gas tanker trucks or renew its five-year gas delivery contract with Fuel Delivery Corp. WrenMart's estimated cost of capital, appropriate for this project, is 8.30% per year. The project's free cash flows are estimated as follows: Help Nancy by computing the IRR of the project. Instructions: - Include all symbols and punctuation: 7500 \$1,500 - Never spell out the unit: 7.4 months - Round long decimals to the nearest hundredth: 20.334120.33 - If the answer is a percentage, convert to percentage form before rounding: 0.03948 3.948%3.95%

Answer & Explanation Solved by verified expert

See Answer