Question: Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points. Use info below Net present value = Present

Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points.

Use info below

Net present value = Present value of cash inflows - Present value of cash outflows

Project A: Present value of cash inflows = Annual cash inflows x PVIFA8%,4 =

$126000 x 3.312127 = $417328.00

Present value of cash outflows = Initial investment = $400000

Net present value = $417328 - $400000 = $17328

Project B: Present value of cash inflows = Annual cash inflows x PVIFA8%,4

= $52800 x 3.312127 = $174880.31

Present value of cash outflows = Initial investment = $160000

Net present value = $174880.31 - $160000 = $14880.31

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Assignment Content For this assignment, refer to the scenario located in "Problems - Series A" section 10-19A of Ch. 10, "Planning for Capital Investments" of Fundamental Managerial Accounting...

Q:

Two mutually exclusive investment projects have the following forecasted cash flows: Use Table II and Table IV to answer the questions. a. Compute the internal rate of return for each project. Round...

Q:

BUSI 2083 Introduction to Managerial Accounting - QUIZ 3 1) Life cycle costing is the accounting system that corresponds to A) the non-financial dimension of costs analysis. B) the project dimension...

Q:

Section lV Presented below are terms preceded by letters and followed by a list of definitions Match the letter with the term with the definition. Use the space provided preceding each definition....

Q:

Brett Collins is reviewing his company's investment in a cement plant. The company paid $14,800,000 five years ago to acquire the plant. Now top management is considering an opportunity to sell it....

Q:

Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Internal Rate of Return % Project A Project B Which project...

Q:

Someone please help me figure out part A with clarrifying answers says mine are wrong. post the pictures of tables on theee need this to help review for final Dwight Donovan, the president of Solomon...

Q:

0 ER Two mutually exclusive investment projects have the following forecasted cash flows: A -$15,000 +8,000 +8,000 +8,000 +8,000 +55,000 Use Table II and Table IV to answer the questions. Year 0 1 2...

Q:

Exercise 13-9 Internal Rate of Return and Net Present Value [LO1, LO2] Exercise 13-9 Internal Rate of Return and Net Present Value [L01, L02] Scotia Family Health Team is investigating purchasing an...

Q:

wo mutually exclusive investment projects have the following forecasted cash flows: Year A B 0 -$25,000 -$25,000 1 +13,000 0 2 +13,000 0 3 +13,000 0 4 +13,000 +75,000 Use Table II and Table IV to...

Q:

True or False and Explain. All credits will be given to your explanations. 1. An increase in exchange rate will cause a shift in the demand curve for foreign exchange to the right. 2. Exchange rate...

Q:

Tthe box is stationary on the inclined surface. The coefficient of static friction between the box and the surface is s . (a) If the mass of the box is 10 kg, = 20, = 30, and s = 0.24, what force...

Q:

How can I Calculate the compound average annual growth rates (CAGR) for revenue and net income using the Geomean function

Q:

What is back topic ofof mental health in the workplace

Q:

Identify and control your anxieties

Q:

Understanding and Addressing Anxiety

Q:

2. Read a famous or familiar speech (such as Martin Luther Kings I Have a Dream speech), and create an outline for it. Can you follow a clear sequence of points? Do the subpoints support the speakers...