A Company Is Considering a Five-Year Project

question 72

Essay

A company is considering a five-year project.It plans to invest $60,000 now and forecasts cash flows of $16,200 for each year.The company requires a hurdle rate of 12%.Calculate the internal rate of return to determine whether it should accept this project.Selected factors for a present value of an annuity of 1 for five years are shown below:
$\begin{array}{lc}\underline {\text { Interest }} &\underline {\text { Present Value of an Annuity of 1 }}\\ \underline{\text { Rate }}& \underline{\text { Factor }} \\{10 \%} &{3.7908}\\12 \% & 3.6048 \\14 \% & 34331\end{array}$

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Definitions:

Nursing Practice

The profession or discipline of nursing, which involves the provision of health care to individuals, families, and communities to attain, maintain, or recover optimal health and quality life.

Static

Unchanging or lacking development, often used to describe a character or situation that does not evolve over time.

Expanded

Increased in size, volume, scope, or complexity, often referring to the extension or broadening of concepts, territories, or activities.

Nursing Education

The formal training and instruction provided to individuals to prepare them for the nursing profession, encompassing both theoretical knowledge and practical skills.