Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the internal rate of return of an investment of $227,460 that would generate an annual cash inflow of $60,000 for the next 5 years is a.10% b.12% c.6% d.cannot be determined from the data given
Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the internal rate of return of an investment of $227,460 that would generate an annual cash inflow of $60,000 for the next 5 years is a.10% b.12% c.6% d.cannot be determined from the data given
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Following is a table for the present value of $1 at compound interest:
| Year | 6% | 10% | 12% | ||
| 1 | 0.943 | 0.909 | 0.893 | ||
| 2 | 0.890 | 0.826 | 0.797 | ||
| 3 | 0.840 | 0.751 | 0.712 | ||
| 4 | 0.792 | 0.683 | 0.636 | ||
| 5 | 0.747 | 0.621 | 0.567 |
Following is a table for the present value of an annuity of $1 at compound interest:
| Year | 6% | 10% | 12% | ||
| 1 | 0.943 | 0.909 | 0.893 | ||
| 2 | 1.833 | 1.736 | 1.690 | ||
| 3 | 2.673 | 2.487 | 2.402 | ||
| 4 | 3.465 | 3.170 | 3.037 | ||
| 5 | 4.212 | 3.791 | 3.605 |
Using the tables provided, the
a.10%
b.12%
c.6%
d.cannot be determined from the data given
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