A company is considering investing in a new machine that requires an initial investment of $62,949....
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A company is considering investing in a new machine that requires an initial investment of $62,949. The machine will generate annual net cash flows of $24,868 for the next three years. What is the internal rate of return of this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment 1 1 Annual Net Cash Flow = Present Value Factor 62,949 Find this factor on the appropriate table to estimate the Internal Rate of Return Periods (p) = 3 Internal Rate of Return % 24,868 = 2.5313 A company is considering investing in a new machine that requires an initial investment of $62,949. The machine will generate annual net cash flows of $24,868 for the next three years. What is the internal rate of return of this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment 1 1 Annual Net Cash Flow = Present Value Factor 62,949 Find this factor on the appropriate table to estimate the Internal Rate of Return Periods (p) = 3 Internal Rate of Return % 24,868 = 2.5313
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The internal rate of return is that rate at which the NPV is equal to zero Initial Investment Annual ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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