Perez Company is considering an investment of $26,120 that provides net cash flows of $8,600 annually for four years.
(a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)
(b) The hurdle rate is 10%. Should the company invest in this project on the basis of internal rate of return?
What is the internal rate of return of this investment?
