Question
4) Internal Rate of Return Learning Objective 3 A project is estimated to cost $463,565 and provide annual net cash flows of $115,000 for nine
4) Internal Rate of Return Learning Objective 3
A project is estimated to cost $463,565 and provide annual net cash flows of $115,000 for nine years.
Present Value of an Annuity of $1 at Compound Interest
Year6%10%12%15%20%
10.9430.9090.8930.8700.833
21.8331.7361.6901.6261.528
32.6732.4872.4022.2832.106
43.4653.1703.0372.8552.589
54.2123.7913.6053.3522.991
64.9174.3554.1113.7843.326
75.5824.8684.5644.1603.605
86.2105.3354.9684.4873.837
96.8025.7595.3284.7724.031
107.3606.1455.6505.0194.192
Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
