Annual Life Project Investment Income Project 22A $17,220 6 years 23A 21,000 9 years 24A 15,700 7 years Annual income constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation. Click here to view PV table. (a) Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 10. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal Rate of Return Project 22A $240,600 271,400 284,100 23A 24A % % % (b) If Iggy Company's required rate of return is 11%, which projects are acceptable? The following project(s) are acceptable #
Annual Life Project Investment Income Project 22A $17,220 6 years 23A 21,000 9 years 24A 15,700 7 years Annual income constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation. Click here to view PV table. (a) Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 10. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal Rate of Return Project 22A $240,600 271,400 284,100 23A 24A % % % (b) If Iggy Company's required rate of return is 11%, which projects are acceptable? The following project(s) are acceptable #
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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