a. Using the IRR formula in the textbook and what is the present value factor for this investment? b. Given the answer above, what is the investment’s internal rate of return? and c. The internal rate of return = ?
a. Using the IRR formula in the textbook and what is the present value factor for this investment? b. Given the answer above, what is the investment’s internal rate of return? and c. The internal rate of return = ?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 20EA: Towson Industries is considering an investment of $256,950 that is expected to generate returns of...
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6. Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years.
a. Using the IRR formula in the textbook and what is the
b. Given the answer above, what is the investment’s
and
c. The internal rate of return = ?
PLEASE NOTE: All PV Factors will be rounded to three decimal places (i.e. 1.234). Round your IRR answers, in percentage format, to one decimal place (i.e. 12.3%).
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