A project is estimated to cost $278,299 and provide annual net cash flows of $83,000 for five years.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...
icon
Related questions
Question

g

eBook
Internal Rate of Return
A project is estimated to cost $278,299 and provide annual net cash flows of $83,000 for five years.
Present Value of an Annuity of $1 at Compound Interest
Year
6%
10% 12%
15%
20%
0.943 0.909
0.893
0.870
1.833
1.736
1.690
1.626
2.673
2.487
2.402
2.283
3.465
3.170
3.037
2.855
4.212
3.791
3.605
3.353
4.917
4.355
4.111
3.785
5.582
4.868 4.564
4.160
5.335
4.968
4.487
5.759
5.328
4.772
6.145 5.650 5.019
1
2
3
4
5
6
7
8
9
10
6.210
Show Me How
6.802
7.360
0.833
1.528
2.106
2.589
2.991
3.326
3.605
3.837
4.031
4.192
Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest
table shown above.
%
Transcribed Image Text:eBook Internal Rate of Return A project is estimated to cost $278,299 and provide annual net cash flows of $83,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 1.833 1.736 1.690 1.626 2.673 2.487 2.402 2.283 3.465 3.170 3.037 2.855 4.212 3.791 3.605 3.353 4.917 4.355 4.111 3.785 5.582 4.868 4.564 4.160 5.335 4.968 4.487 5.759 5.328 4.772 6.145 5.650 5.019 1 2 3 4 5 6 7 8 9 10 6.210 Show Me How 6.802 7.360 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above. %
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Rate Of Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning