Internal Rate of ReturnA project is estimated to cost $358,020 and provide annual net cash flows of $85,000 for five years.Present Value of an Annuity of $1 at Compound InterestYear10%12%15%20%12345676%80.9431.8332.6733.4654.2124.9170.9091.7362.4873.1703.7914.3554.8685.3355.5826.2100.8931.6902.4023.0373.6054.1110.8701.6264.5644.9682.2834.1604.48796.8025.7595.3284.7724.031107.360 6.145 5.650 5.0194.192Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.%2.8553.3533.7850.8331.5282.1062.5892.9913.3263.6053.837

The actual rate of return provided by an investment is referred to as the Internal rate of return.…

Internal Rate of Return A project is estimated to cost $358,020 and provide annual net cash flows of $85,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.037 2.855 2.589 3.605 3.353 2.991 4.111 3.785 3.326 4.564 4.160 3.605 4.968 4.487 3.837 5.328 4.772 4.031 5.019 4.192 2 3 4 5 6 7 8 9 10 4.212 4.917 5.582 6.210 6.802 7.360 3.170 3.791 4.355 4.868 5.335 5.759 6.145 5.650 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Inte %

Internal Rate of Return A project is estimated to cost $358,020 and provide annual net cash flows of $85,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.037 2.855 2.589 3.605 3.353 2.991 4.111 3.785 3.326 4.564 4.160 3.605 4.968 4.487 3.837 5.328 4.772 4.031 5.019 4.192 2 3 4 5 6 7 8 9 10 4.212 4.917 5.582 6.210 6.802 7.360 3.170 3.791 4.355 4.868 5.335 5.759 6.145 5.650 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Inte %

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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