Charlie has a project for which he had determined a present worth of $56,822. He now has to calculate the IRR for the project, but unfortunately he has lost complete information about the cash flows. He knows only that the project has a five-year service life and a firet cost of $180,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project? Click the icon to view the table of compound interest factors for discrete compounding periods when i= 10%. The IRR for the project is percent. (Round to one decimal place as needed.)
Charlie has a project for which he had determined a present worth of $56,822. He now has to calculate the IRR for the project, but unfortunately he has lost complete information about the cash flows. He knows only that the project has a five-year service life and a firet cost of $180,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project? Click the icon to view the table of compound interest factors for discrete compounding periods when i= 10%. The IRR for the project is percent. (Round to one decimal place as needed.)
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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Transcribed Image Text:Charlie has a project for which he had determined a present worth of $56,822. He now has to calculate the IRR for the project, but unfortunately he has lost complete information about the cash flows. He knows only that the project has a
five-year service life and a first cost of $180,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project?
A Click the icon to view the table of compound interest factors for discrete compounding periods when i= 10%.
The IRR for the project is percent.
(Round to one decimal place as needed.)
Transcribed Image Text:Single Payment
Uniform Series
Series
Arithmetic
Compound Present
Amount
Sinking
Uniform
Capital
Recovery Worth
Factor
Present
Gradient
Worth
Fund
Series
Series
Factor
Factor
Factor
Factor
Factor
Factor
(F/P,i,N)
(P/F,i,N)
0.90909
(A/F,i,N)
(F/A,i,N)
1.0000
(A/P,i,N)
1.1000
(P/A,i,N)
(A/G,i,N)
1.1000
1.00000
0.90909
0.00000
1.2100
0.82645
0.47619
2.1000
0.57619
1.7355
0.47619
1.3310
0.75131
0.30211
3.3100
0.40211
2.4869
0.93656
1.4641
0.68301
0.21547,
4.6410
0.31547
3.1699
1.3812
1.6105
0.62092
0.16380
6.1051
0.26380
3.7908
1.8101
1.7716
0.56447
0.12961
7.7156
0.22961
4.3553
2.2236
1.9487
0.51316
0.10541
9.4872
0.20541
4.8684
2.6216
2.1436
0.46651
0.08744
11.436
0.18744
5.3349
3.0045
2.3579
0.42410
0.07364
13.579
0.17364
5.7590
3.3724
10
2.5937
0.38554
0.06275
15.937
0.16275
6.1446
3.7255
11
2.8531
0.35049
0.05396
18.531
0.15396
6.4951
4.0641
12
3.1384
0.31863
0.04676
21.384
0.14676
6.8137
4.3884
24.523
0.14078
7.1034
4.6988
0.28966
0.26333
13
3.4523
0.04078
14
3.7975
0.03575
27.975
0.13575
7.3667
4.9955
15
4.1772
0.23939
0.03147
31.772
0.13147
7.6061
5.2789
16
4.5950
0.21763
0.02782
35.950
0.12782
7.8237
5.5493
5.0545
0.19784
0.02466
40.545
0.12466
8.0216
5.8071
17
5.5599
0.17986
0.02193
45.599
0.12193
8.2014
6.0526
18
0.16351
0.01955
51.159
0.11955.
8.3649
6.2861
19
6.1159
0.01746
57.275
0.11746
8.5136
6.5081
20
6.7275
0.14864
0.01562
64.002
0.11562
8.6487
6.7189
21
7.4002
0.13513
O 7715
60180
0.014001
71 402
011401
Z12 3 4 56 78
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