Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows.

Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation.

Instructions
(a) Determine the internal rate of return for each project. Round the internal rate of return factor to three decimals.
(b) If Iggy Company€™s required rate of return is 10%, which projects areacceptable?

Project 22A 23A 24A Investment $240,000 270,000 280,000 Annual Income $15,500 20,600 15,700 Life of Project 6 years 9 years years