g eBookInternal Rate of ReturnA project is estimated to cost $278,299 and provide annual net cash flows of $83,000 for five years.Present Value of an Annuity of $1 at Compound InterestYear6%10% 12%15%20%0.943 0.9090.8930.8701.8331.7361.6901.6262.6732.4872.4022.2833.4653.1703.0372.8554.2123.7913.6053.3534.9174.3554.1113.7855.5824.868 4.5644.1605.3354.9684.4875.7595.3284.7726.145 5.650 5.019123456789106.210Show Me How6.8027.3600.8331.5282.1062.5892.9913.3263.6053.8374.0314.192Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interesttable shown above.%

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Business

Accounting

A project is estimated to cost $278,299 and provide annual net cash flows of $83,000 for five years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

eBook
Internal Rate of Return
A project is estimated to cost $278,299 and provide annual net cash flows of $83,000 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
1.833
1.736
1.690
1.626
2.673
2.487
2.402
2.283
3.465
3.170
3.037
2.855
4.212
3.791
3.605
3.353
4.917
4.355
4.111
3.785
5.582
4.868 4.564
4.160
5.335
4.968
4.487
5.759
5.328
4.772
6.145 5.650 5.019
1
2
3
4
5
6
7
8
9
10
6.210
Show Me How
6.802
7.360
0.833
1.528
2.106
2.589
2.991
3.326
3.605
3.837
4.031
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.
%

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