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Part Six APPLY THE CONCEPTS: Internal rate of return The Sutherland purchasing department has made revisions to their costs and annual cash flows for Project
Part Six APPLY THE CONCEPTS: Internal rate of return The Sutherland 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 $240,400. The Project B's revised investment is $107,000. project's life and cash flow have changed to 6 The project's life and cash flow have changed years and $52,000, respectively, while expenses to 5 years and $82,500 while expenses have been eliminated. 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 4.623077 X 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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