Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:A company is considering an iron ore extraction project that requires an initial investment of $1,200,000 and will yield annual cash inflows of $534,283 for three years. The company's discount rate is 9%. Calculate IRR.
Present value of ordinary annuity of $1:
10%
12%
14%
15%
16%
18%
20%
1
0.909
0.893
0.877
0.870
0.862
0.847
0.833
1.736
1.690
1.647
1.626
1.605
1.566
1.528
3
2.487
2.402
2.322
2.283
2.246
2.174
2.106
4
3.170
3.037
2.914
2.855
2.798
2.690
2.589
OA. 16%
OB. 15%
D
OC. 14%
O
OD. 18%
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