A company is considering investing in a new machine that requires an initial investment of $51,939. The machine will generate annu net cash flows of $20,885 for the next three years. What is the internal rate of return of this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Initial investment Internal Rate of Return Annual Net Cash Flow % = Present Value Factor
A company is considering investing in a new machine that requires an initial investment of $51,939. The machine will generate annu net cash flows of $20,885 for the next three years. What is the internal rate of return of this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Initial investment Internal Rate of Return Annual Net Cash Flow % = Present Value Factor
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
Section: Chapter Questions
Problem 1PS
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