A project is estimated to cost $204,533 and provide annual net cash flows of $61,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 1 2 3
A project is estimated to cost $204,533 and provide annual net cash flows of $61,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 1 2 3
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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![A project is estimated to cost $204,533 and provide annual net cash flows of $61,000 for five years.
Present Value of an Annuity of $1 at Compound Interest
Year
6%
10%
12%
15%
20%
0.893
0.870
0.833
1.626
1.528
2.283
2.106
2.855
2.589
1
2
3
4
5
6
7
8
0.943
1.833
2.673
3.465
4.212
4.917
5.582
6.210
0.909
3.353
2.991
3.785
3.326
4.868
4.160
3.605
5.335
4.968
4.487
3.837
9
5.759
5.328
4.772
4.031
10
6.145 5.650 5.019
4.192
Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.
%
6.802
7.360
1.736
2.487
3.170
3.791
1.690
2.402
3.037
3.605
4.111
4.564
4.355](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a2fc1ec-eaf3-4f4a-a36e-aeede7698fa0%2F93e1d61a-dbbb-45e5-aea3-67ae49722993%2Fbxlsref_processed.png&w=3840&q=75)
Transcribed Image Text:A project is estimated to cost $204,533 and provide annual net cash flows of $61,000 for five years.
Present Value of an Annuity of $1 at Compound Interest
Year
6%
10%
12%
15%
20%
0.893
0.870
0.833
1.626
1.528
2.283
2.106
2.855
2.589
1
2
3
4
5
6
7
8
0.943
1.833
2.673
3.465
4.212
4.917
5.582
6.210
0.909
3.353
2.991
3.785
3.326
4.868
4.160
3.605
5.335
4.968
4.487
3.837
9
5.759
5.328
4.772
4.031
10
6.145 5.650 5.019
4.192
Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.
%
6.802
7.360
1.736
2.487
3.170
3.791
1.690
2.402
3.037
3.605
4.111
4.564
4.355
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