Sunday, September 22, 2019

A project is estimated to cost $74,035 and provide annual net cash flows of $17,000 for six years

A project is estimated to cost $74,035 and provide annual net cash flows of $17,000 for six years. Determine the internal rate of return for this project, using Exhibit 2.

Answer:
10%
[($74,035 ÷ $17,000) = 4.355, the present value of an annuity factor for six periods at 10%, from Exhibit 2]

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