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
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Project Investment
22A
23A
24A
Annual income is 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 depreciation.
Click here to view PV table.
(a)
Project
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
22A
$240,600
271,400
284,100
23A
Annual Life of
Income Project
$17,220 6 years
21,000 9 years
15,700 7 years
24A
%
%
%
(b)
If Iggy Company's required rate of return is 11%, which projects are acceptable?
The following project(s) are acceptable
Transcribed Image Text:Project Investment 22A 23A 24A Annual income is 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 depreciation. Click here to view PV table. (a) Project 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 22A $240,600 271,400 284,100 23A Annual Life of Income Project $17,220 6 years 21,000 9 years 15,700 7 years 24A % % % (b) If Iggy Company's required rate of return is 11%, which projects are acceptable? The following project(s) are acceptable
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