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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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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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Transcribed Image Text:Book Show Me How E Print Item 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 Previous Check My Work 3 more Check My Work uses remaining. Email Instructor Save and Exit Submit Assignmen All work saved. DD F11 F10 80 888 F9 F8 F6 F4 & # $ %3D 4 5 6 7 8 9 3 P E R Y U G H JK
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