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APPLY THE CONCEPTS: Internal rate of return have been eliminated. The Underwood purchasing department has made revisions to their costs and annual cash flows for
APPLY THE CONCEPTS: Internal rate of return have been eliminated. The Underwood purchasing department has made revisions to their costs and annual cash flows for Project A and Project B, as outlined below. mject A Project A's revised investment is $255,600. The project's life and cash flow have changed to I" yea rs and $52,500, respectively, while expenses Eject B Project B's revised investment is $119,800. The project's life and cash How have changed to 6 years and $82,500 while expenses reduced slightly to $55,000. Com pute the internal ordinary annuity table. Note: Enter the IRR factor, to 5 decimal places. Project A: "he calculated IRR factor is was .1 ,0 Project B: "he calculated IRR factor is table? v' 0/0 :l :l ate of return factor for Project A and Project B and then identify each project's corresponding percentage from the PV and this value corresponds to which percentage in the present value of ordinary annuity and this value corresponds to which percentage in the present value of ordinary annuity
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