Canbera Company is considering investing $450,000 in telecommunications equipment which would have an estimated life of...

  

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Canbera Company is considering investing $450,000 in telecommunications equipment which would have an estimated life of 5 years with zero residual value. The cash flows are as shown below. The IRR of the project would be: Cash Flows Year 1 $120,000 2 $235,000 3 $140,000 4 $98,000 Present Value of $1 factors are given below: 11% 12345 e Minimized View 10% 0.909 0.826 0.751 0.683 0.621 less than 10% between 12% and 13% more than 13% between 8% and 10% 0.893 0.797 0.712 0.636 0.567 12% 0.885 0.783 0.693 0.613 0.543 13% 0.877 0.769 0.675 0.592 0.519 Canbera Company is considering investing $450,000 in telecommunications equipment which would have an estimated life of 5 years with zero residual value. The cash flows are as shown below. The IRR of the project would be: Cash Flows Year 1 $120,000 2 $235,000 3 $140,000 4 $98,000 Present Value of $1 factors are given below: 11% 12345 e Minimized View 10% 0.909 0.826 0.751 0.683 0.621 less than 10% between 12% and 13% more than 13% between 8% and 10% 0.893 0.797 0.712 0.636 0.567 12% 0.885 0.783 0.693 0.613 0.543 13% 0.877 0.769 0.675 0.592 0.519

Answer rating: 100% (QA)

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