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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: 10% 12% 1 0.909 0.893 2 1.736 1.690 1.647 3 4 3.170 3.037 14% 15% 16% 18% 20% 0.877 0.870 0.862 0.847 0.833 1.626 1.528 1.605 2.246 2.914 2.855 2.798 2.690 1.566 2.174 2.106 2.589 2.487 2.402 2.322 2.283

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: 10% 12% 1 0.909 0.893 2 1.736 1.690 1.647 3 4 3.170 3.037 14% 15% 16% 18% 20% 0.877 0.870 0.862 0.847 0.833 1.626 1.528 1.605 2.246 2.914 2.855 2.798 2.690 1.566 2.174 2.106 2.589 2.487 2.402 2.322 2.283

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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
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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