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Required: Compute the Investments Internal Rate of return. Enter as a percent. If required, round your answer to the nearest whole percent. AR-

Required: Compute the Investments Internal Rate of return. Enter as a percent. If required, round your answer to the nearest whole percent. AR-

FINANCIAL ACCOUNTING
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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Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 128.1 and Exhibit 128.2 as you complete the requirement below. Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $487,114. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project fullow Year Cash Revenues Cash Expenses 1 $1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 2 $1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Required: Compute the Investment's Internal Rate of return. Enter as a percent. If required, round your answer to the nearest whole percent. IRR -
Transcribed Image Text:Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 128.1 and Exhibit 128.2 as you complete the requirement below. Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $487,114. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project fullow Year Cash Revenues Cash Expenses 1 $1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 2 $1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Required: Compute the Investment's Internal Rate of return. Enter as a percent. If required, round your answer to the nearest whole percent. IRR -
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