Concept introduction:
Requirement 1:
To have an internal rate of return(IRR) 10% how much annually cash flow should A inc earn from the project.
Concept introduction:
Cash flow-it generally defines the advantages and the cost of a future project. As cost is represented through cash outflows and benefits as cash inflow. The present value of a cash flow refers to the discounted value of the present month of prospect sum of money.
Internal rate of return (IRR)- is used in order to measure the profitability of the possible investment. It is a rate of discount that makes the net present value of all cash flow equal to zero.
Requirement 2:
To explain:
(a) Computing the amount apple invested in a capital asset in recent years.
(b) Amount of cash flow that Apple must earn on this project, assuming 10-year life and 10% internal rate of return(IRR).
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Chapter 11 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
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