Iggy Company is considering three capital expenditure projects, Relevant data for the projects are as follows. Project 22A 23A 24A 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. I Company uses the straight-line method of depreciation. Click here to view the factor table. (a) 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 Annual Investment Income $244,500 $17,490 274,400 20,770 282,900 15,700 23A 24A Internal Rate of Return % Life of Project 6 years 9 years 7 years % %
Iggy Company is considering three capital expenditure projects, Relevant data for the projects are as follows. Project 22A 23A 24A 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. I Company uses the straight-line method of depreciation. Click here to view the factor table. (a) 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 Annual Investment Income $244,500 $17,490 274,400 20,770 282,900 15,700 23A 24A Internal Rate of Return % Life of Project 6 years 9 years 7 years % %
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:Iggy Company is considering three capital expenditure projects, Relevant data for the projects are as follows.
Project Investment
22A
23A
24A
Project
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.
(a)
22A
Annual
Income
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.)
23A
$244,500 $17,490
274,400
20,770
282,900
15,700
24A
Internal Rate of
Return
Life of
Project
6 years
9 years
7 years
%
%
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