[The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $47,947 today. The m- generate annual cash flows of $21,000 for the next three years. is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) ( r(s) from the tables provided.) unt Invested Annual Net Cash Flow = Present Value Factor

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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[The following information applies to the questions displayed below.]
A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will
generate annual cash flows of $21,000 for the next three years.
What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate
factor(s) from the tables provided.)
Amount Invested
Internal Rate of Return
Annual Net Cash Flow
%
< Prev
Present Value Factor
5 of 5
HH
Next
G
O
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will generate annual cash flows of $21,000 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Amount Invested Internal Rate of Return Annual Net Cash Flow % < Prev Present Value Factor 5 of 5 HH Next G O
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