Current Attempt in Progress Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual Project Investment Income 22A $244,900 $17,000 273,300 284,900 20,650 15,700 23A (a) 24A Click here to view the factor table. 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 of depreciation. Project Determine the internal rate of return for each project. (Round answers O decimal places, eg. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 22A 23A (b) 24A Internal Rate of Return % The following project(s) are acceptable Life of Project % 6 years 9 years 7 years % If Iggy Company's required rate of return is 11%, which projects are acceptable?
Current Attempt in Progress Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual Project Investment Income 22A $244,900 $17,000 273,300 284,900 20,650 15,700 23A (a) 24A Click here to view the factor table. 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 of depreciation. Project Determine the internal rate of return for each project. (Round answers O decimal places, eg. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 22A 23A (b) 24A Internal Rate of Return % The following project(s) are acceptable Life of Project % 6 years 9 years 7 years % If Iggy Company's required rate of return is 11%, which projects are acceptable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Current Attempt in Progress
Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows.
Project Investment
22A
23A
24A
(a)
Project
Annual
Income
$244,900 $17,000
20,650
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 of depreciation.
Click here to view the factor table.
22A
(b)
23A
273,300
24A
284,900
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.)
15,700
Internal Rate of
Return
%
The following project(s) are acceptable
Life of
Project
6 years
9 years
7 years
%
%
If Iggy Company's required rate of return is 11%, which projects are acceptable?
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