Top Posters
Since Sunday
23
s
6
t
6
J
5
j
5
s
5
a
5
p
5
f
5
s
5
d
5
j
5
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
ejoty ejoty
wrote...
Go to Answer
Posts: 83
Rep: 0 0
1 months ago
James Bruce is the CEO of Bruce Industries. James is interested in purchasing new pollution abatement equipment because the current equipment is outdated and not efficient.  The controller of the company has identified equipment that costs $104,110 and will provide annual cash operating inflows of $28,290 for 5 years. The equipment currently being used is 3 years old and could be sold for $2,130.  What is the equipment's internal rate of return?

Type of Cash FlowPeriodsInterest RateFactor
PV ordinary annuity56%4.2124
PV ordinary annuity58%3.9927
PV ordinary annuity510%3.7907
PV ordinary annuity512%3.6048
PV ordinary annuity515%3.3522


▸ 15%

▸ 12%

▸ 8%

▸ 10%
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 9 times
1 Reply
Replies
Answer verified by a subject expert
annalassannalass
wrote...
#1
Posts: 65
Rep: 0 0
1 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
12%

($104,110 - $2,130) ÷ $28,290 = 3.6048, which is the PV factor for 12%
1

Related Topics

ejoty Author
wrote...

1 months ago
Correct Slight Smile TY
mambah4
wrote...

Yesterday
Thanks
ezsancheezy
wrote...

2 hours ago
This helped my grade so much Perfect
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  322 People Browsing
 297 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 3241
  
 519
  
 319
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 454
Previous poll results: Do you believe in global warming?