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Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $490,000 Annual cash inflows $90,000 Salvage
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
Investment required in equipment | $490,000 |
Annual cash inflows | $90,000 |
Salvage value | $0 |
Life of the investment | 10 years |
Discount rate | 7% |
Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. |
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.) |
13%
11%
9%
15%
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