Question: Iggy Compary is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual income is constant over the life of the




Iggy Compary 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 Compary uses the straight-line method of depreciation. Click here to view the factor table. Determine the internal rate of return for each project. (Round answers o decimal ploces, eg 13\%. For calculation purposes, use 5 decimal places as displayed in the foctor table provided) (b) If Iggy Company s required rate of return is 11X. which projects are acceptable? The following project(s) are acceptable TABLE 1 Future Value of 1 TABLE 2 Future Value of an Annuity of 1 TABLE 3 Present Value of 1 TABLE 4 Present Value of an Annuity of 1
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