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Sunshine Company is considering a 3-year capital project that costs $759,300. The company has a hurdle rate of 8%. The investment is expected to generate
Sunshine Company is considering a 3-year capital project that costs $759,300. The company has a hurdle rate of 8%. The investment is expected to generate $315,000 annual cash inflows. The internal rate of return for this project is closest to: Periods 6% 100 H N 1 O 4 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 L 1.060 1.124 1.191 1.263 1.338 1.419 1.504 1.594 1.690 1.791 Future Value of $1 10% 12% 1.100 1.120 1.210 1.254 1.331 1.405 1.464 1.574 1.611 1.762 1.772 1.974 1.949 2.211 2.144 2.476 2.359 2.773 2.594 3.106 8% 1.080 1.166 1.260 1.361 1.469 1.587 1.714 1.851 1.999 2.159 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 16% 1.160 1.346 1.561 1.811 2.101 2.437 2.827 3.279 .803 .412 18% 1.180 1.393 .643 1.939 2.288 2.700 3.186 3.759 4.436 5.234 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 0 - 0 0 3 4 % Periods 4% O VOU WNA 1.000 2.040 3.122 4.247 5.416 6.633 7.898 9.214 10.583 12.006 Future Value of a series of $1 Cash Flows 6% 8% 10% 12% 14% 16% 1.000 1.000 1.000 1.000 1.000 1.000 2.060 2.080 2.100 2.120 2.149 2 .160 3.184 3.246 3.310 3.374 3.440 3.506 4.375 4.506 4.6414.779 4.921 5.067 5.637 5.867 6.105 6.353 6.610 6.877 6.975 7.336 7.716 8.115 8.536 8 .977 8.394 8.923 9.487 10.089 10.730 11.414 9.898 10.637 11.436 12.300 13.233 14.240 11.491 12.488 13.580 14.776 16.085 17.519 13.181 14.487 15.938 17.549 19.337 21.321 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 20% 1.000 2.220 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 Periods HNM in Noooo 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 Present Value of $1 8% 10% 12% 0.926 0.909 0.893 0.857 0.826 0.797 0.794 0.751 0.712 0.735 0.683 0.636 0.681 0.621 0.567 0.630 0.564 0.507 0.583 0.513 0.452 0.540 0.467 0.404 0.500 0.424 0.361 0.463 0.386 0.322 14% 16% 0.877 0.862 0.769 0 .743 0.6750.641 0.5920 .552 0.5190.476 0.456 0.410 0.400 0 .354 0.351 0 .305 0.308 0.263 0.270 0.227 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 Periods HnM+inn 000 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 Present Value of a series of $1 Cash Flows 6% 8% 10% 12% 14% 16% 0.943 0.926 0.909 0 .893 0.877 0.862 1.833 1.783 1.736 1 .690 1.647 1.605 2.673 2.577 2.487 2.402 2.322 2.246 3.465 3.312 3.170 3.037 2.914 2.798 4.212 3.993 3.791 3.605 3.433 3.274 4.917 4.623 4.355 4.111 3.889 3.685 5.582 5.206 4.868 4.564 4.288 4.039 6.210 5.747 5.335 4.968 4.6394.344 6.802 6.247 5.759 5.328 4.9464 .607 7.360 6.710 6.145 5.650 5.2164.833 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 Multiple Choice
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