An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment’s internal rate of return? Below is a table for the present value of $1 at compound interest. Year   6%   10%   12%   15% 1   0.943   0.909   0.893   0.870 2   0.890   0.826   0.797   0.756 3   0.840   0.751   0.712   0.658 4   0.792   0.683   0.636   0.572 5   0.747   0.621   0.567   0.497   Below is a table for the present value of an annuity of $1 at compound interest. Year   6%   10%   12%   15% 1   0.943   0.909   0.893   0.870 2   1.833   1.736   1.690   1.626 3   2.673   2.487   2.402   2.283 4   3.465   3.170   3.037   2.855 5   4.212   3.791   3.605   3.353   fill in the blank 1 %

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment’s internal rate of return?

Below is a table for the present value of $1 at compound interest.

Year   6%   10%   12%   15%
1   0.943   0.909   0.893   0.870
2   0.890   0.826   0.797   0.756
3   0.840   0.751   0.712   0.658
4   0.792   0.683   0.636   0.572
5   0.747   0.621   0.567   0.497

 

Below is a table for the present value of an annuity of $1 at compound interest.

Year   6%   10%   12%   15%
1   0.943   0.909   0.893   0.870
2   1.833   1.736   1.690   1.626
3   2.673   2.487   2.402   2.283
4   3.465   3.170   3.037   2.855
5   4.212   3.791   3.605   3.353

 

fill in the blank 1 %

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