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Benson Corporation is considering an investment in equipment that would cost $50,000 and provide annual cash inflows of $14,000. The company's required rate of return is 12%; the internal rate of return for the investment is 10.5%. Should the company make this investment

Respuesta :

Zviko

Answer:

No, the company should not make this investment

Explanation:

Only projects with an internal rate of return for the investment greater than the company's required rate of return should be accepted.  

For Benson Corporation, the internal rate of return for the investment is 10.5% and less than the company's required rate of return of 12%. Thus, the company should not make this investment

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