The management of south texas tourism co is considering two, Ask an Expert

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The management of South Texas Tourism Co. is considering two capital investment projects. The estimated Net Cash Flows from each project are as follows:

Gondola Tour

Year Boats Busses

1 $580,000 $210,000

2 580,000 210,000

3 580,000 210,000

4 580,000 210,000

The gondola boats require an investment of $1,761,460 while the tour busses require an investment of $665,700. No residual value is expected from either project.

Determine the Internal Rate of Return for each project by computing the Net present Value of an Annuity factor from the Appendix, and using that factor to interpolate the IRR percentage.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92050246

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