wish for a detailed answer. thank you A project is estimated to cost $248,400 and provide annual net cash inflows of $50,000 for 8 years. Year   6%   10%   12% 1   0.943   0.909   0.893 2   1.833   1.736   1.690 3   2.673   2.487   2.402 4   3.465   3.170   3.037 5   4.212   3.791   3.605 6   4.917   4.355   4.111 7   5.582   4.868   4.564 8   6.210   5.335   4.968 9   6.802   5.759   5.328 10   7.360   6.145   5.650   Determine the internal rate of return for this project, using the above present value of an annuity table. fill in the blank 1 %

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
icon
Related questions
Question

I wish for a detailed answer. thank you

A project is estimated to cost $248,400 and provide annual net cash inflows of $50,000 for 8 years.

Year   6%   10%   12%
1   0.943   0.909   0.893
2   1.833   1.736   1.690
3   2.673   2.487   2.402
4   3.465   3.170   3.037
5   4.212   3.791   3.605
6   4.917   4.355   4.111
7   5.582   4.868   4.564
8   6.210   5.335   4.968
9   6.802   5.759   5.328
10   7.360   6.145   5.650

 

Determine the internal rate of return for this project, using the above present value of an annuity table.
fill in the blank 1 %

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education