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A project is estimated to cost $248,400 and provide annual cash flows of $50,000 for eight years. Determine the internal rate of return for this
A project is estimated to cost $248,400 and provide annual cash flows of $50,000 for eight years. Determine the internal rate of return for this project, using the following table.
Year | 6% | 10% | 12% |
1 | .943 | .909 | .893 |
2 | 1.833 | 1.736 | 1.690 |
3 | 2.673 | 2.487 | 2.402 |
4 | 3.465 | 3.170 | 3.037 |
5 | 4.212 | 3.791 | 3.605 |
6 | 4.917 | 4.355 | 4.111 |
7 | 5.582 | 4.868 | 4.564 |
8 | 6.210 | 5.335 | 4.968 |
9 | 6.802 | 5.759 | 5.328 |
10 | 7.360 | 6.145 | 5.650 |
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