The internal rate of return of this investment is 10.5%.
If the hurdle rate is 9.5%, the investment should be invested in.
<h3>What is internal rate of return?</h3>
Internal rate of return is a capital budgeting method that determines the the discount rate that equates the after-tax cash flows from an investment to the amount invested
If the internal rate of return is greater than the hurdle rate, the investment should be undertaken. If this is not the case, the investment should not be invested in.
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-214,170
Cash flow each year from year 1 to 4 = 30,000
IRR = 10.5%
Learn more about internal rate of return, refer:
brainly.com/question/15868597
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