Question: I need help to understand and solve this two part questions. Part Six Intemal rate of return APPLY THE CONCEPTS: The Krause purchasing department has

I need help to understand and solve this two part questions.

Part Six Intemal rate of return APPLY THE CONCEPTS: The Krause purchasingdepartment has made revisions to their costs and annual cash flows for

Part Six Intemal rate of return APPLY THE CONCEPTS: The Krause purchasing department has made revisions to their costs and annual cash flows for Project A and Project B, as outlined below. project A Project A's revised investment is $190,600. The project's life and cash flow have changed to S years and $49,000, respectively, while expenses have been eliminated. project B Project B's revised investment is $115,600. The project's life and cash flow have changed to S years and $80,000 while expenses reduced slightly to $55,000. Compute the internal rate of return factor for Project A and Project a and then identify each project's corresponding percentage from the PV ordinary annuity table. Note: Enter the IRR factor, to S decimal places. Project A: The calculated IRR factor is Project B: The calculated IRR factor is and this value corresponds to which percentage in the present value of ordinary annuity table? and this value corresponds to which percentage in the present value of ordinary annuity table?

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!