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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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am. 18.
![A company is considering an iron ore extraction project that requires an initial investment of $1,500,000 and will yield annual cash inflows of $557,621 for four years. The company's discount rate
is 9%. Calculate IRR.
Present value of ordinary annuity of $1:
1
2
3
4
10% 12% 14%
0.909 0.893 0.877
1.736 1.690 1.647
2.487 2.402 2.322
3.170 3.037 2.914 2.855 2.798
OA. 16%
OB. 18%
O C. 17%
OD. 20%
15% 16% 18% 20%
0.870 0.862 0.847 0.833
1.626 1.605 1.566
1.528
2.283 2.246 2.174 2.106
2.690 2.589](https://content.bartleby.com/qna-images/question/832f6b93-1aa9-4316-a702-c0bbf3dfbd67/201ebd92-fedb-4915-96fb-d15a7e92a72b/34pbf1q_thumbnail.jpeg)
Transcribed Image Text:A company is considering an iron ore extraction project that requires an initial investment of $1,500,000 and will yield annual cash inflows of $557,621 for four years. The company's discount rate
is 9%. Calculate IRR.
Present value of ordinary annuity of $1:
1
2
3
4
10% 12% 14%
0.909 0.893 0.877
1.736 1.690 1.647
2.487 2.402 2.322
3.170 3.037 2.914 2.855 2.798
OA. 16%
OB. 18%
O C. 17%
OD. 20%
15% 16% 18% 20%
0.870 0.862 0.847 0.833
1.626 1.605 1.566
1.528
2.283 2.246 2.174 2.106
2.690 2.589
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