Question
Sammy Corporation is considering two alternative investment proposals with the following data: Proposal A Proposal B Investment $850,000 $468,000 Useful life 8 years 8 years
Sammy Corporation is considering two alternative investment proposals with the following data:
| Proposal A | Proposal B | |
|---|---|---|
| Investment | $850,000 | $468,000 |
| Useful life | 8 years | 8 years |
| Estimated annual net cash inflows for 8 years | $125,000 | $78,000 |
| Residual value | $40,000 | $ |
| Depreciation method | Straight-line | Straight-line |
| Required rate of return | 14% | 10% |
Using a financial calculator, determine the internal rate of return for Proposal B? (Ignore taxes)
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Quality Management Audits In Nuclear Medicine Practices
Authors: International Atomic Energy Agency (IAEA)
1st Edition
9201121083, 978-9201121080
