One of the international companies intends to open a project to produce solar energy in Mosul for a period of 8 years. The volume of investment in the project is (1,800,000) dollars, the annual revenues are estimated at (400,000) dollars, and the annual costs are (90,000) dollars. Calculate the project's internal rate of return, knowing that the discount rate is the lowest (10%) and the highest (20%) and whether the project is accepted or rejected. 10:39

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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One of the international companies
intends to open a project to produce
solar energy in Mosul for a period of
8 years. The volume of investment
in the project is (1,800,000) dollars,
the annual revenues are estimated
at (400,000) dollars, and the annual
costs are (90,000) dollars. Calculate
the project's internal rate of return,
knowing that the discount rate is the
lowest (10%) and the highest (20%)
and whether the project is accepted
or rejected..
1
10:39
Transcribed Image Text:One of the international companies intends to open a project to produce solar energy in Mosul for a period of 8 years. The volume of investment in the project is (1,800,000) dollars, the annual revenues are estimated at (400,000) dollars, and the annual costs are (90,000) dollars. Calculate the project's internal rate of return, knowing that the discount rate is the lowest (10%) and the highest (20%) and whether the project is accepted or rejected.. 1 10:39
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