Internal Rate of Return A project is estimated to cost $507,840 and provide annual net cash flows of $69,000 for 10 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 2. 1.833 1.736 1.690 1.626 1.528 3. 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5. 4.212 3.791 3.605 3.353 2.991 6. 4.917 4.355 4.111 3.785 3.326 7. 5.582 4.868 4.564 4.160 3.605 8. 6.210 5.335 4.968 4.487 3.837 6. 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.
Internal Rate of Return A project is estimated to cost $507,840 and provide annual net cash flows of $69,000 for 10 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 2. 1.833 1.736 1.690 1.626 1.528 3. 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5. 4.212 3.791 3.605 3.353 2.991 6. 4.917 4.355 4.111 3.785 3.326 7. 5.582 4.868 4.564 4.160 3.605 8. 6.210 5.335 4.968 4.487 3.837 6. 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.
Chapter1: Financial Statements And Business Decisions
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Internal Rate of Return
A project is estimated to cost $507,840 and provide annual net cash flows of $69,000 for 10 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
3
2.673
2.487
2.402
2.283
2.106
4
3.465
3.170
3.037
2.855
2.589
4.212
3.791
3.605
3.353
2.991
4.917
4.355
4.111
3.785
3.326
7
5.582
4.868
4.564
4.160
3.605
6.210
5.335
4.968
4.487
3.837
6.802
5.759
5.328
4.772
4.031
10
7.360
6.145
5.650
5.019
4.192
of return for this proj
using the Present Value of an Annuity of $1 at Compound Interest table shown above.
Determine the internal
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