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Ann [662]
3 years ago
14

Hathaway, Inc., a resort management company, is refurbishing one of its hotels at a cost of $7.8 million. Management expects tha

t this will lead to additional cash flows of $1.8 million for the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Hathaway go ahead with this project?

Business
1 answer:
Oksi-84 [34.3K]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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