Bridgeport Company is considering two capital expenditures. Relevant data for the projects are as follows: Project Initial investment Annual cash inflow Life of project Salvage value A Project A $260,084 $46,590 7 years $0 Project B Bridgeport Company uses the straight-line method to depreciate its assets. B $278,237 $44,540 9 years $0 Calculate the internal rate of return for each project. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25125. Round answers to O decimal places, e.g. 15%.) Click here to view the factor table. Internal rate of return % % 9
Bridgeport Company is considering two capital expenditures. Relevant data for the projects are as follows: Project Initial investment Annual cash inflow Life of project Salvage value A Project A $260,084 $46,590 7 years $0 Project B Bridgeport Company uses the straight-line method to depreciate its assets. B $278,237 $44,540 9 years $0 Calculate the internal rate of return for each project. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25125. Round answers to O decimal places, e.g. 15%.) Click here to view the factor table. Internal rate of return % % 9
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...
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