TB 13-47 (Appendix 13A) The following data pertain to an investment(Appendix 13A) The following data pertain to an investment proposal:Present Investment Required$27,130Annual Cost Savings$5,000Projected life the investment10 yearsProjected Salvage Value$-0-What would be the internal rate of return? (Ignore income taxes in this problem.)Multiple Choice5.426%.13.0%.54.26%.О542.6%.

Internal Rate of Return (IRR) is the discount rate at which the present value of cash inflows is…

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What would be the internal rate of return? (Ignore income taxes in this problem.) Multiple Choice 5.426%. 13.0%. 54.26%. 542.6%.

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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Question

TB 13-47 (Appendix 13A) The following data pertain to an investment
(Appendix 13A) The following data pertain to an investment proposal:
Present Investment Required
$27,130
Annual Cost Savings
$5,000
Projected life the investment
10 years
Projected Salvage Value
$-0-
What would be the internal rate of return? (Ignore income taxes in this problem.)
Multiple Choice
5.426%.
13.0%.
54.26%.
О
542.6%.

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