A company is considering investing in a new machine that requires an initial investment of $61,949. The machine will generate annual net cash flows of $24,911 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Answer is complete but not entirely correct. Annual Net Cash Flow Present Value Factor S 61,949 24,911 Find this factor on the appropriate table to estimate the Internal Rate of Return Periods (p) 12 Internal Rate of Return. 12 % 2.4868
A company is considering investing in a new machine that requires an initial investment of $61,949. The machine will generate annual net cash flows of $24,911 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Answer is complete but not entirely correct. Annual Net Cash Flow Present Value Factor S 61,949 24,911 Find this factor on the appropriate table to estimate the Internal Rate of Return Periods (p) 12 Internal Rate of Return. 12 % 2.4868
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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Transcribed Image Text:A company is considering investing in a new machine that requires an initial investment of $61,949. The machine will generate annual
net cash flows of $24,911 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
EVA of $1) (Use appropriate factor(s) from the tables provided.)
Initial investment
Answer is complete but not entirely correct.
Annual Net Cash
Flow
Periods (p)
Internal Rate of Return
Present Value
Factor
61,949
24,911
Find this factor on the appropriate table to estimate the Internal Rate of Return
12
12 %
2.4868
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