Kizspy | Question: 30 (Choose 1 answer)
Sodoco Company is purchasing a production facility at a cost of $20 million. The firm expects the project to generate annual cash flows of $6 million over the next five years. Its cost of capital is 15 percent. What is the internal rate of return on this project? (Do not round intermediate computations. Round final answer to the nearest percent.)
Α. 17%
B. 15%
C. 36%
D. 20%
