Answered: If a capital investment is $28,048 and…

If a capital investment is $28,048 and equal annual cash inflows are 62,605.3, state the internal rate of return factor rounded to two decimal places.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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Question

3. If a capital investment is $28,048 and equal annual cash inflows are 62,605.3, state the internal rate of return factor rounded to two decimal places.

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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