Question
I'm very confused about how to calculate. I've placed question marks in the fields I need help with. APPLY THE CONCEPTS: Internal rate of return
I'm very confused about how to calculate. I've placed question marks in the fields I need help with.
APPLY THE CONCEPTS: Internal rate of return
The Darling purchasing department has made revisions to their costs and annual cash flows for Project A and Project B, as outlined below. | |
Project A | Project B |
Project A's revised investment is $255,600. The project's life and cash flow have changed to 7 years and $52,500, respectively, while expenses have been eliminated. | Project B's revised investment is $141,500. The project's life and cash flow have changed to 6 years and $87,500 while expenses reduced slightly to $55,000. |
Compute the internal rate of return factor for Project A and Project B and then identify each project's corresponding percentage from the PV ordinary annuity table.
Note: Enter the IRR factor, to 5 decimal places.
Project A: The calculated IRR factor is ??? and this value corresponds to which percentage in the present value of ordinary annuity table? ???%
Project B: The calculated IRR factor is ??? and this value corresponds to which percentage in the present value of ordinary annuity table? ???%
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