Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9PB: Joliet Company is considering two alternative investments. The company requires an 18% return from...
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Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company
requires a 10% return from its investments.
Initial investment
Net cash flows int
Pool
Spa
Pool
$ (180,000)
Year 1
Year 2
Year 3
82,295
Year 4
92,400
Year 5
67,000
Compute the internal rate of return for each c the projects using excel functions. (Round your answers to 2 decimal places.)
IRR
Spa
$ (125,000)
42,000
58,000
34,000
52,000
68,000
74,000
26,000
Transcribed Image Text:Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company requires a 10% return from its investments. Initial investment Net cash flows int Pool Spa Pool $ (180,000) Year 1 Year 2 Year 3 82,295 Year 4 92,400 Year 5 67,000 Compute the internal rate of return for each c the projects using excel functions. (Round your answers to 2 decimal places.) IRR Spa $ (125,000) 42,000 58,000 34,000 52,000 68,000 74,000 26,000
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ISBN:
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OpenStax College