Iggy Company is considering three capital expenditure projects, Relevant data for the projects are as follows. Project 22A 23A 24A Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. I Company uses the straight-line method of depreciation. Click here to view the factor table. (a) Project Determine the internal rate of return for each project. (Round answers O decimal places, eg. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 22A Annual Investment Income $244,500 $17,490 274,400 20,770 282,900 15,700 23A 24A Internal Rate of Return % Life of Project 6 years 9 years 7 years % %
Iggy Company is considering three capital expenditure projects, Relevant data for the projects are as follows. Project 22A 23A 24A Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. I Company uses the straight-line method of depreciation. Click here to view the factor table. (a) Project Determine the internal rate of return for each project. (Round answers O decimal places, eg. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 22A Annual Investment Income $244,500 $17,490 274,400 20,770 282,900 15,700 23A 24A Internal Rate of Return % Life of Project 6 years 9 years 7 years % %
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9PA: Pitt Company is considering two alternative investments. The company requires a 12% return from its...
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