question 3

Annual net income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Sunland Company uses the straight-line method of depreciation. Clickhere to view the factor table (a) Determine the internal rate of retum for each project. (Round answers to o decimal places, es, 13x For calculation purposes, use 5 decimal ploces as displayed in the factor table provided) TABLE 3 Present Value of 1 Determine the internal rate of return for each project. (Round answers to 0 decimal places eg. 13\%. For calculation purposes, use 5 decinal ploces as displayod in the factor table provided.) (b) If Sunland Company's required rate of return is 11%, which projects are acceptable