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Crane Company is considering a long-term investment project called ZIP. ZIP will require an investment of $124,740. It will have a useful life of 4
Crane Company is considering a long-term investment project called ZIP. ZIP will require an investment of $124,740. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $84,000, and annual cash outflows would increase by $42,000. The company's required rate of return is 12%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answers to decimal places, e.g. 15%.) Internal rate of return on this project is between % and %. Determine whether this project should be accepted? The project be accepted. TABLE 4 Present Value of an Annuity of 1 (n) Payments 1 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% .96154 .95238 .94340 .93458 .92593 91743 .90909 .90090 .89286 .86957 2 2 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 3 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.62990 3.54595 3.46511 3.31213 3.23972 3.10245 3.03735 3.38721 4.10020 3.16986 3.79079 2.85498 3.35216 5 5 4.45182 4.32948 4.21236 3.99271 3.88965 3.69590 3.60478 6 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 7 6.00205 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.78637 6.46321 5.58238 6.20979 8 00 6.73274 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 9 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 10 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 12 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 13 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 14 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 15 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737
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