Internal Rate of ReturnA project is estimated to cost $358,020 and provide annual net cash flows of $85,000 for five years.Present Value of an Annuity of $1 at Compound InterestYear10%12%15%20%12345676%80.9431.8332.6733.4654.2124.9170.9091.7362.4873.1703.7914.3554.8685.3355.5826.2100.8931.6902.4023.0373.6054.1110.8701.6264.5644.9682.2834.1604.48796.8025.7595.3284.7724.031107.360 6.145 5.650 5.0194.192Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.%2.8553.3533.7850.8331.5282.1062.5892.9913.3263.6053.837

The actual rate of return provided by an investment is referred to as the Internal rate of return.…

Internal Rate of Return A project is estimated to cost $358,020 and provide annual net cash flows of $85,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.037 2.855 2.589 3.605 3.353 2.991 4.111 3.785 3.326 4.564 4.160 3.605 4.968 4.487 3.837 5.328 4.772 4.031 5.019 4.192 2 3 4 5 6 7 8 9 10 4.212 4.917 5.582 6.210 6.802 7.360 3.170 3.791 4.355 4.868 5.335 5.759 6.145 5.650 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Inte %

Internal Rate of Return A project is estimated to cost $358,020 and provide annual net cash flows of $85,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.037 2.855 2.589 3.605 3.353 2.991 4.111 3.785 3.326 4.564 4.160 3.605 4.968 4.487 3.837 5.328 4.772 4.031 5.019 4.192 2 3 4 5 6 7 8 9 10 4.212 4.917 5.582 6.210 6.802 7.360 3.170 3.791 4.355 4.868 5.335 5.759 6.145 5.650 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Inte %

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 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...

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