Gossman Corporation is analyzing a capital expenditure that will involve a cash outlay of P104,904. Estimated cash flows are expected to be P36,000 annually for four years. The present value factors for an annuity of P1 for 4 years at interest of 10%, 12%, 14%, and 15% are 3.170, 3.037, 2.914, and 2.855, respectively. The internal rate of return for this investment is? a. 2% b. 2.4% c. 14% d. 3%
Gossman Corporation is analyzing a capital expenditure that will involve a cash outlay of P104,904. Estimated cash flows are expected to be P36,000 annually for four years. The present value factors for an annuity of P1 for 4 years at interest of 10%, 12%, 14%, and 15% are 3.170, 3.037, 2.914, and 2.855, respectively. The internal rate of return for this investment is? a. 2% b. 2.4% c. 14% d. 3%
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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Gossman Corporation is analyzing a capital expenditure that will involve a cash outlay of P104,904. Estimated cash flows are expected to be P36,000 annually for four years. The present value factors for an
a. 2%
b. 2.4%
c. 14%
d. 3%
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