Bbook Internal Rate Of Return Methodi The Internal Rate Of Return Method Is Used By Testerman Construction Co In Analyz 1 (32.58 KiB) Viewed 58 times
Bbook Internal Rate Of Return Methodi The Internal Rate Of Return Method Is Used By Testerman Construction Co In Analyz 2 (35.06 KiB) Viewed 58 times
Bbook Internal Rate Of Return Methodi The Internal Rate Of Return Method Is Used By Testerman Construction Co In Analyz 3 (24.86 KiB) Viewed 58 times
BBOOK Internal Rate of Return Methodi The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $75,820 and annual net cash flows of $20,000 for each of the five years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3,465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3:837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annility of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places. 2 3 4 5 6 7 B
2 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 19 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annulty of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places. b. Using the factor determined in part (a) and the present value of an annuity of $1 table above, determine the internal rate of return for the proposal. Previous Next > Check My Work 3 4 5 6
Average Rate of Reburn-Cost Savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $113,000 with a $10,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $23,755 per year. In addition, the equipment will have operating and energy costs of $5,460 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. D
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