Required information [The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will generate annual cash flows of $21,000 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate Factor(s) from the tables provided.) n= Amount Invested 1 Annual Net Cash Flow $ $ 47,947 1 21,000 = Find this factor on the appropriate table to estimate the Internal Rate of Return Internal Rate of Return = 15 % Present Value Factor 2.2832
Required information [The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will generate annual cash flows of $21,000 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate Factor(s) from the tables provided.) n= Amount Invested 1 Annual Net Cash Flow $ $ 47,947 1 21,000 = Find this factor on the appropriate table to estimate the Internal Rate of Return Internal Rate of Return = 15 % Present Value Factor 2.2832
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is n
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Required information
[The following information applies to the questions displayed below.]
A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will
generate annual cash flows of $21,000 for the next three years.
What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate
factor(s) from the tables provided.)
n=
Amount Invested
1
47,947 1
Annual Net Cash Flow
$
$
21,000
Find this factor on the appropriate table to estimate the Internal Rate of Return
Internal Rate of Return
=
15%
< Prev
Present Value Factor
2.2832
5 of 5
1
#
=
Next >
C
O](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4eaf0dc0-86e4-472e-8883-99db34af8e95%2F7a7c00de-7cf7-4d79-9266-45a0d9f78773%2Fv5mo95e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will
generate annual cash flows of $21,000 for the next three years.
What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate
factor(s) from the tables provided.)
n=
Amount Invested
1
47,947 1
Annual Net Cash Flow
$
$
21,000
Find this factor on the appropriate table to estimate the Internal Rate of Return
Internal Rate of Return
=
15%
< Prev
Present Value Factor
2.2832
5 of 5
1
#
=
Next >
C
O
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