
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The following spreadsheet has been developed to solve for the incremental internal rate of return for the comparison of the new challenger to the defender. Complete the missing
information in the table.
Net Cash Flow (NCF) for
challenger
Net Cash Flow (NCF) for
defender
Incremental Cash Flow
End of Year (EOY)
(INCR, CF)
24
$-520,000
$0,000
24
1-9
$140,000
$0,000
10
$300,000
$0,000
Round your answer to the nearest dollar. The tolerance is +/- 10. If entering a negative number use the (-) sign.
What is the IRR for the incremental cash flow?
IRR =
% Do all calculations to 5 decimal places and round final answer to 2 decimal places. The tolerance is +/- 0.02. If entering a
negative number use the (-) sign.
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