Mary, a project manager for ABC Inc., is reviewing a product quality improvement project. She has determined that the project's Annual Worth of $6,688. for a period of 8 years. She now has to calculate the IRR for the project but unfortunately she has lost some information about the cash flo She knows only that the project has: • a 8-year project life with an initial cost of $300,000. • a set of equal revenue cash flows occurred at the end of each year for 8 years, and • MARR used for calculation the Annual Worth was 6%. Find the annual revenue first and then calculate the IRR for the project = ? O 14% < IRR (i*) < 15% O 13% < IRR (i*) < 14% O 10% < IRR (i*) < 11% O 9% < IRR (i*) < 10% O 8% < IRR (i*) < 9%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mary, a project manager for ABC Inc., is reviewing a product quality improvement project.
She has determined that the project's Annual Worth of $6,688. for a period of 8 years.
She now has to calculate the IRR for the project but unfortunately she has lost some information about the cash flows.
She knows only that the project has:
• a 8-year project life with an initial cost of $300,000.
• a set of equal revenue cash flows occurred at the end of each year for 8 years, and
• MARR used for calculation the Annual Worth was 6%.
Find the annual revenue first and then calculate the IRR for the project = ?
O 14% < IRR (i*) < 15%
O 13% < IRR (i*) < 14%
O 10% < IRR (i*) < 11%
O 9% < IRR (i*) < 10%
O 8% < IRR (i*) < 9%
Transcribed Image Text:Mary, a project manager for ABC Inc., is reviewing a product quality improvement project. She has determined that the project's Annual Worth of $6,688. for a period of 8 years. She now has to calculate the IRR for the project but unfortunately she has lost some information about the cash flows. She knows only that the project has: • a 8-year project life with an initial cost of $300,000. • a set of equal revenue cash flows occurred at the end of each year for 8 years, and • MARR used for calculation the Annual Worth was 6%. Find the annual revenue first and then calculate the IRR for the project = ? O 14% < IRR (i*) < 15% O 13% < IRR (i*) < 14% O 10% < IRR (i*) < 11% O 9% < IRR (i*) < 10% O 8% < IRR (i*) < 9%
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