im having a bit of a problem trying to decide the best answer to this question:
Should Tangshan Mining company accept a new project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3 and $1,800,000 in year 4? Use IRR and assume unlimited capital budget
Yes.
No.
It depends.
none of these.
I know that the IRR is around 9.6% but withought being given the cost of capital i am at a loss. Maybe im missing somthing obvious, hopefully so.
i appreciate anyone who can help give me some insight
Should Tangshan Mining company accept a new project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3 and $1,800,000 in year 4? Use IRR and assume unlimited capital budget
Yes.
No.
It depends.
none of these.
I know that the IRR is around 9.6% but withought being given the cost of capital i am at a loss. Maybe im missing somthing obvious, hopefully so.
i appreciate anyone who can help give me some insight