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QS 24-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (0) What is the internal rate of return of this investment? (PV of $1, EV of $1 PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 5%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return

QS 24-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (0) What is the internal rate of return of this investment? (PV of $1, EV of $1 PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 5%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 26.1APR: Average rate of return method, net present value method, and analysis for a service company The...
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QS 24-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 5%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. H Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return < Required A Required B > nices
Transcribed Image Text:QS 24-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 5%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. H Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return < Required A Required B > nices
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