Question
Salarian Company is considering two capital expenditures. Relevant data for the projects are as follows: Project A B Initial investment $193,567 $233,828 Annual income $43,150
Salarian Company is considering two capital expenditures. Relevant data for the projects are as follows:
Project A B Initial investment $193,567 $233,828 Annual income $43,150 $42,230 Life of project 6 years 9 years Salvage value $0 $0 Salarian Company uses the straight-line method to depreciate its assets.
Calculate the internal rate of return for each project. (For calculation purposes, use 4 decimal places as displayed in the factor table provided, e.g. 1.2512. Round answers to 0 decimal places, e.g. 15%.) Click here to view PV table. Internal rate of return Project A % Project B %
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