(b) If Sunland Company's required rate of return is 11%, which projects are acceptable?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 13%. For calculation purposes, use
5 decimal places as displayed in the factor table provided.)
Project
22A
23A
24A
(b)
Internal Rate of
Return
%
%
%
If Sunland Company's required rate of return is 11%, which projects are acceptable?
The following project(s) are acceptable
Transcribed Image Text:Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project 22A 23A 24A (b) Internal Rate of Return % % % If Sunland Company's required rate of return is 11%, which projects are acceptable? The following project(s) are acceptable
Sunland Company is considering three capital expenditure projects. Relevant data for the projects are as follows.
Project Investment
22A
$243,500
271,400
23A
(a)
24A
283,000
Annual
Income
$17,320
20,600
15,700
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.
Sunland Company uses the straight-line method of depreciation.
Click here to view PV table.
Life of
Project
6 years
9 years
7 years
Determine the internal rate of return for each project. (Round answers O decimal places, e.g. 13%. For calculation purposes, use
5 decimal places as displayed in the factor table provided.)
Internal Rate of
Transcribed Image Text:Sunland Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Project Investment 22A $243,500 271,400 23A (a) 24A 283,000 Annual Income $17,320 20,600 15,700 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. Sunland Company uses the straight-line method of depreciation. Click here to view PV table. Life of Project 6 years 9 years 7 years Determine the internal rate of return for each project. (Round answers O decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal Rate of
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