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Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)

Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)

FINANCIAL ACCOUNTING
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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Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company requires a 10% return from its investments. Initial investment Net cash flows int Pool Spa Pool $ (180,000) Year 1 Year 2 Year 3 82,295 Year 4 92,400 Year 5 67,000 Compute the internal rate of return for each c the projects using excel functions. (Round your answers to 2 decimal places.) IRR Spa $ (125,000) 42,000 58,000 34,000 52,000 68,000 74,000 26,000
Transcribed Image Text:Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company requires a 10% return from its investments. Initial investment Net cash flows int Pool Spa Pool $ (180,000) Year 1 Year 2 Year 3 82,295 Year 4 92,400 Year 5 67,000 Compute the internal rate of return for each c the projects using excel functions. (Round your answers to 2 decimal places.) IRR Spa $ (125,000) 42,000 58,000 34,000 52,000 68,000 74,000 26,000
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