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Company is considering two capital expenditures. Relevant data for the projects are as follows: Project Initial investment Annual cash inflow Life of project Salvage value
Company is considering two capital expenditures. Relevant data for the projects are as follows:
Project
Initial investment
Annual cash inflow
Life of project
Salvage value
A
$249,803
$47,980
7 years
$0
B
$254,795
$47,760
8 vears
$0
Splish Company uses the straight-line method to depreciate its assets.
Calculate the internal rate of return for each project
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