a) Compute the present value factor and the IRR for the two projects. Please make sure your final answers for the present value factor are accurate to 3 decimal places and the ones for the IRR are accurate to the nearest whole percent. Project Present value factor IRR A B b) Which project would Ingersoll Antiques most likely invest in? O Project A O Project B ONeither
a) Compute the present value factor and the IRR for the two projects. Please make sure your final answers for the present value factor are accurate to 3 decimal places and the ones for the IRR are accurate to the nearest whole percent. Project Present value factor IRR A B b) Which project would Ingersoll Antiques most likely invest in? O Project A O Project B ONeither
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
Related questions
Question
![Ingersoll Antiques is considering two projects. Their required rate of return is 10%.
Project
Initial investment cost
Annual cash flows
Life of the project
A
B
$160,000 $170,000
$56,557 $47,157
3 years 5 years
a) Compute the present value factor and the IRR for the two projects.
Please make sure your final answers for the present value factor are accurate to 3 decimal places and the ones for the IRR are accurate to the nearest whole percent.
Project Present value factor IRR
A
B
b) Which project would Ingersoll Antiques most likely invest in?
O Project A
O Project B
O Neither](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F78968798-a122-4f11-a1a7-7aa453e76246%2F3a317b3e-fc28-4308-9a87-795608dd9377%2F5j62yhy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ingersoll Antiques is considering two projects. Their required rate of return is 10%.
Project
Initial investment cost
Annual cash flows
Life of the project
A
B
$160,000 $170,000
$56,557 $47,157
3 years 5 years
a) Compute the present value factor and the IRR for the two projects.
Please make sure your final answers for the present value factor are accurate to 3 decimal places and the ones for the IRR are accurate to the nearest whole percent.
Project Present value factor IRR
A
B
b) Which project would Ingersoll Antiques most likely invest in?
O Project A
O Project B
O Neither
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