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ssuming a six-year time horizon, what is the internal rate of return of the remodeling project? Calculate sing both present value factors and separately using Excel's IRR function. Annual cash flow: Revenue Less costs: Other than depreciation Depreciation Income before taxes Income tax expense Net income Add depreciation 110,000.00 10,000.00 58,333 41,667 8,333 33,333.33 58.333

ssuming a six-year time horizon, what is the internal rate of return of the remodeling project? Calculate sing both present value factors and separately using Excel's IRR function. Annual cash flow: Revenue Less costs: Other than depreciation Depreciation Income before taxes Income tax expense Net income Add depreciation 110,000.00 10,000.00 58,333 41,667 8,333 33,333.33 58.333

Essentials Of Investments
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
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Indicate how the internal rate of return is calculated using the factor. (answer is in % format)

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Required Assuming a six-year time horizon, what is the internal rate of return of the remodeling project? Calculate sing both present value factors and separately using Excel's IRR function. Annual cash flow: Revenue Less costs: Other than depreciation Depreciation Income before taxes Income tax expense Net income Add depreciation Cash flow Present value factor: $ 350,000 + $ 91,667 = 110,000.00 $ 10,000.00 58,333 41,667 8,333 33,333.33 58,333 91,667 3.82 factor Indicate how the Internal rate of return is calculated using the factor arrived at above. %
Transcribed Image Text:Required Assuming a six-year time horizon, what is the internal rate of return of the remodeling project? Calculate sing both present value factors and separately using Excel's IRR function. Annual cash flow: Revenue Less costs: Other than depreciation Depreciation Income before taxes Income tax expense Net income Add depreciation Cash flow Present value factor: $ 350,000 + $ 91,667 = 110,000.00 $ 10,000.00 58,333 41,667 8,333 33,333.33 58,333 91,667 3.82 factor Indicate how the Internal rate of return is calculated using the factor arrived at above. %
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