Management of Blossom, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the following table. The appropriate cost of capital is 13.00 percent. Year 0 1 2 3 4 Project 1 -$250,000 56,700 76,500 76,500 90,000 Project 2 -$324,000 157,925 160,750 100,800 Project 3 -$480,000 214,500 214,500 214,500 214,500 Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%.)
Management of Blossom, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the following table. The appropriate cost of capital is 13.00 percent. Year 0 1 2 3 4 Project 1 -$250,000 56,700 76,500 76,500 90,000 Project 2 -$324,000 157,925 160,750 100,800 Project 3 -$480,000 214,500 214,500 214,500 214,500 Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4CMA: Foster Manufacturing is analyzing a capital investment project that is forecast to produce the...
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![Management of Blossom, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the
following table. The appropriate cost of capital is 13.00 percent.
Year
0
1
2
3
4
Project 1
-$250,000
56,700
76,500
76,500
90,000
Project 2
-$324,000
The IRR of project 1 is
157,925
160,750
100,800
Project 3
-$480,000
214,500
Blossom should accept project(s)
214,500
214,500
Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%.)
214,500
Identify the projects that should be accepted.
%, project 2 is
%, and project 3 is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ba2adde-2be1-4254-9d6c-7b20e91cbe03%2F5d2f1366-480a-41a9-a7bf-d00f70f28914%2Fntu57nc_processed.png&w=3840&q=75)
Transcribed Image Text:Management of Blossom, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the
following table. The appropriate cost of capital is 13.00 percent.
Year
0
1
2
3
4
Project 1
-$250,000
56,700
76,500
76,500
90,000
Project 2
-$324,000
The IRR of project 1 is
157,925
160,750
100,800
Project 3
-$480,000
214,500
Blossom should accept project(s)
214,500
214,500
Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%.)
214,500
Identify the projects that should be accepted.
%, project 2 is
%, and project 3 is
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