Question 3

3 of 5 1.25/5 Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Project 22A 23A 24A Investment $242.200 271,500 283,000 Annual Income $16,890 20,710 15,700 Life of Projec 6 years 9 year: 7 years Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation. Click here to view the factor table. (a) Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Internal Rate of Return 22A 11.004 % + Chapter 25 Homework 3 of 5 1.25/5 III (a) Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Internal Rate of Return 11.004 % 22A 23A 11.96 % 24A 8.9468 % (b) If Iggy Company's required rate of return is 11%, which projects are acceptable? The following project(s) are acceptable 22A and : eTextbook and Media Save for Later Attempts. Jurjuseu Submit