Question
The proposed expansion of CIV Electronics' plant facilities requires the immediate outlay of $96,000. Expected net returns are given in the following table. Calculate the
The proposed expansion of CIV Electronics' plant facilities requires the immediate outlay of
$96,000.
Expected net returns are given in the following table. Calculate the internal rate of return (IRR).
| Year 1 | $Nil | Year 4 | $56,000 | |
| Year 2 | $27,000 | Year 5 | $48,000 | |
| Year 3 | $34,000 | Year 6 | $12,000 |
The internal rate of return is %.
(Round to the nearest tenth as needed.)
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Foster George, Srikand M. Datar, Maureen P. Gowing
5th Canadian Edition
0135004934, 978-0135004937
