An investment has the following cash flow profile. For each value of MARR below, what is the minimum value of X such that the investment is attractive based on an internal rate of return measure of merit? EOY 0 1 2 3 4 Cash Flow  $(30,000.00)  $ 6,000.00  $ 13,500.00  $X   $ 13,500.00  MARR is 12 percent/year

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
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An investment has the following cash flow profile. For each value of MARR below, what is the minimum value of X such that the investment is attractive based on an internal rate of return measure of merit?

EOY 0 1 2 3 4
Cash Flow  $(30,000.00)  $ 6,000.00  $ 13,500.00  $X   $ 13,500.00
 MARR is 12 percent/year
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The back of the book says the answer should be $7,413.  Do you know what there would be a descrpency?

 

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