IBM Corporation recently saved $250 million over three years by implementing supply chain software that reduced the

Question:

IBM Corporation recently saved $250 million over three years by implementing supply chain software that reduced the cost of components used in its manufacture of computers. If we assume that the savings occurred equally over the three years and the cost of implementing the new software was $190,250,000, what would be the internal rate of return for this investment? Use the present value of an annuity of $1 table found in Exhibit in determining youranswer.
IBM Corporation recently saved $250 million over three years by
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

Question Posted: