Assuming that all sales are for cash, what is the internal rate of return on the project
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Assuming that all sales are for cash, what is the internal rate of return on the project in Question 46.15A?
Data from Question 46.15
The annual profit forecast for a project is:
The project requires that a new machine be purchased for £128,000. It will be depreciated using the straight line method over five years to a residual value of £8,000. The project will cease when the machine is sold for £8,000 at the end of the fifth year. Ignoring taxation, what is the accounting rate of return?
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Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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