1a

1b

Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $69636 and is expected to generate cash inflows of $28000 each year for three years. The approximate internal rate of return on this project is 11%. 10%. less than the required 8%. O 8%. Sheffield Company is considering buying equipment for $253000 with a useful life of five years and an estimated salvage value of $14000. If annual expected income is $19000, the denominator in computing the annual rate of return is $126500. O $133500. $267000. O $253000