Following is information on two alternative investments being considered by Jolee Company. The company requires a 10%
Fantastic news! We've Found the answer you've been seeking!
Question:
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments.
Project A | Project B | |||||||||
Initial investment | $ | (160,000 | ) | $ | (105,000 | ) | ||||
Expected net cash flows in: | ||||||||||
Year 1 | 40,000 | 32,000 | ||||||||
Year 2 | 56,000 | 50,000 | ||||||||
Year 3 | 80,295 | 66,000 | ||||||||
Year 4 | 90,400 | 72,000 | ||||||||
Year 5 | 65,000 | 24,000 | ||||||||
Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date: