Subject: accounting A company is evaluating an investment of $5,000,000 which will yield net cash inflows of $1,016,880 per year for 6 years with no residual value.What is the internal rate of return?Present value of ordinary annuity of $1:5%7%0.9520.9351.8591.8082.7232.6243.5464,3295.0765.7866.4637.1087.722241356879106%0.9431.8332.6733.4654.2124.9175.5826.216,8027,363.3874.1004.7675.3895.9716.5157.024BIUS I8%0.9261.7832.5773.3123.9934.6235.2065.7476.2476.71亚洲!!!Fx²Insert Formula

IRR (Internal rate of return) is a rate at which the present value of cash inflows is equal to the…

A company is evaluating an investment of $5,000,000 which will yield net cash inflows of $1,016,880 per year for 6 years with no residual value What is the internal rate of return? Present value of ordinary annuity of $1: 5% 7% 0.935 0.952 1.859 1.808 2.723 3.546 4.329 1 2 3 4 5 6 7 8 9 10 5.076 5.786 6.463 7.108 7.722 B 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.21 6.802 7,36 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7.024 IUSTI 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.71 E3 111 E 1 x, x² Insert Formula

A company is evaluating an investment of $5,000,000 which will yield net cash inflows of $1,016,880 per year for 6 years with no residual value What is the internal rate of return? Present value of ordinary annuity of $1: 5% 7% 0.935 0.952 1.859 1.808 2.723 3.546 4.329 1 2 3 4 5 6 7 8 9 10 5.076 5.786 6.463 7.108 7.722 B 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.21 6.802 7,36 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7.024 IUSTI 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.71 E3 111 E 1 x, x² Insert Formula

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
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