Question
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $440,000 Annual cash inflows $77,000 Salvage
| Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
| Investment required in equipment | $440,000 |
| Annual cash inflows | $77,000 |
| Salvage value | $0 |
| Life of the investment | 20 years |
| Discount rate | 13% |
| The internal rate of return on the investment is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.) |
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Accounting
Authors: Carl S. Warren, James M. Reeve, Philip E. Fess
20th Edition
0324025424, 978-0324025422
