APPLY THE CONCEPTS: Internal rate of returnThe Sutherland purchasing department has made revisions to their costs and annual cash flowsfor Project A and Project B, as outlined below.Project AProject BProject A's revised investment is $217,300. The Project B's revised investment is $116,700.project's life and cash flow have changed to 6The project's life and cash flow have changedyears and $47,000, respectively, while expenses to 5 years and $85,000 while expenseshave been eliminated.reduced slightly to $55,000.Compute the internal rate of return factor for Project A and Project B and then identify each project's corresponding percentage from the PV ordinary annuity table.Note: Enter the IRR factor, to 5 decimal places.Project A: The calculated IRR factor is 4.62340 v and this value corresponds to which percentage in the present value of ordinary annuity table?Project B: The calculated IRR factor is3.89 V and this value corresponds to which percentage in the present value of ordinary annuity table?15 X %

Internal rate of return (IRR) is rate at which the NPV is zero . In other words where the present…

asing revisions their cos for Project A and Project B, as outlined below. Project A Pr Project A's revised investment is $217,300. The Project B's revised in project's life and cash flow have changed to 6 The project's life and years and $47,000, respectively, while expenses to 5 years and $85,0 have been eliminated. reduced slightly to s nd then identify each project's corresponding percentage from the PV ordin

asing revisions their cos for Project A and Project B, as outlined below. Project A Pr Project A's revised investment is $217,300. The Project B's revised in project's life and cash flow have changed to 6 The project's life and years and $47,000, respectively, while expenses to 5 years and $85,0 have been eliminated. reduced slightly to s nd then identify each project's corresponding percentage from the PV ordin

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 4PB

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