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The Rydell purchasing department has made revisions to their costs and annual cash flows for Project A and Project B, as outlined below. Project A's
The Rydell purchasing department has made revisions to their costs and annual cash flows for Project A and Project B, as outlined below.
Project A's revised investment is $254,300. The project's life and cash flow have changed to 6 years and $55,000, respectively, while expenses have been eliminated.
Project B's revised investment is $97,300. The project's life and cash flow have changed to 5 years and $80,000 while expenses reduced slightly to $55,000.
Compute the internal rate of return factor for Project A and Project B.
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