Park Co. is considering an investment that requires immediate payment of $30,485 and provides expected cash inflows of $9,000 annually for four years. Assume Park Co. requires a 6% return on its investments.
a. What is the internal rate of return? ( PV of $1, FV of $1, PVA of $1,. And FVA of$1) Round your present value factor to 4 decimals.)
b. Based on its internal rate of return, should Park Co. make the investment?