ronado, Inc. is considering purchasing equipment costing $39000 with a 7-year useful life. Th $8700 and will be depreciated straight-line over its useful life with no salvage value. Coronac hat is the approximate internal rate of return for this investment? Period 7 7% 5.389 8% Present Value of an Annuity of 1 5.206 9% 5.033 10% 4.868 11% 4.712 14% 4.288
ronado, Inc. is considering purchasing equipment costing $39000 with a 7-year useful life. Th $8700 and will be depreciated straight-line over its useful life with no salvage value. Coronac hat is the approximate internal rate of return for this investment? Period 7 7% 5.389 8% Present Value of an Annuity of 1 5.206 9% 5.033 10% 4.868 11% 4.712 14% 4.288
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![Coronado, Inc. is considering purchasing equipment costing $39000 with a 7-year useful life. The equipment will provide cost savings
of $8700 and will be depreciated straight-line over its useful life with no salvage value. Coronado Inc. requires a 9% rate of return.
What is the approximate internal rate of return for this investment?
Period
7
10%
O 11%
000
9%
8%
7%
5.389
8%
Present Value of an Annuity of 1
5.206
9%
5.033
10%
4.868
11%
4.712
14%
4.288](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51edb2e3-b85e-4f1f-a6b5-1420e9c9af7e%2Fcca45607-9c72-4533-9ba0-c5a14de837e2%2Fgv573ae_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Coronado, Inc. is considering purchasing equipment costing $39000 with a 7-year useful life. The equipment will provide cost savings
of $8700 and will be depreciated straight-line over its useful life with no salvage value. Coronado Inc. requires a 9% rate of return.
What is the approximate internal rate of return for this investment?
Period
7
10%
O 11%
000
9%
8%
7%
5.389
8%
Present Value of an Annuity of 1
5.206
9%
5.033
10%
4.868
11%
4.712
14%
4.288
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