(7) Solve the problem using present worth, annual cost and internal rate of return for the given cash flow data. Check your results with incremental rate of return method. The minimum attractive rate of return is 10%. ΕΟΥ 3 4 Project X Project Y -50,000 5000 17,500 30,000 42,500 -50,000 50,000 10,000 10,000 10,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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(7) Solve the problem using present worth, annual cost and internal rate of return for the given cash flow
data. Check your results with incremental rate of return method. The minimum attractive rate of return is
10%.
EOY
3
4
Project X
Project Y
-50,000
5000
17,500
30,000
42,500
-50,000
50,000
10,000
10,000
10,000
Transcribed Image Text:(7) Solve the problem using present worth, annual cost and internal rate of return for the given cash flow data. Check your results with incremental rate of return method. The minimum attractive rate of return is 10%. EOY 3 4 Project X Project Y -50,000 5000 17,500 30,000 42,500 -50,000 50,000 10,000 10,000 10,000
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