Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $174,160 and annual net cash flows of $40,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Determine the internal rate of return for the proposal. fill in the blank 2 %
Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $174,160 and annual net cash flows of $40,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Determine the internal rate of return for the proposal. fill in the blank 2 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $174,160 and annual net cash flows of $40,000 for each of the six years of its useful life.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Determine the internal rate of return for the proposal.
fill in the blank 2 %
Transcribed Image Text:Internal rate of return method
The internal rate of return method is used by Testerman Construction Co. in
analyzing a capital expenditure proposal. The following data is provided:
DATA
Period
Cash flow
-$174,160
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
1
2
4
6
Using formulas and cell references, perform the required analysis, and input your
answer into the Amount column. Transfer the numeric result for the green entry cell
(B18) into the appropriate fields in CNOWV2 for grading.
Amount
Formula
Internal rate of return
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