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Pandora,Inc

question 72

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Pandora,Inc.is considering a five-year project that has an initial outlay or cost of $70,000.The cash inflows from its project for years 1,2,3,4 and 5 are all the same at $14,000.The borrowing costs are 10%.What is the IRR? Should Pandora use the IRR method to evaluate this project? Explain.


Definitions:

New York City

A major city in the United States, known for its significant cultural, financial, and media impact globally.

Proposition

A statement or assertion that expresses a judgment or opinion that can be either true or false.

Statement

An expression or assertion that something is the case, typically presented in declarative form.

Way

A method, style, or manner of doing something; a direction or path.

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