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Home Q & A Board Other Fields Homework Help Business Accounting
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7 years ago
Glades Thread Company is evaluating an investment that will cost $720,000 and will yield cash flows of $230,000 in the first year, $370,000 in the second year, and $360,000 in the third and the final year. Use the table below and determine the internal rate of return.
Present value of $1:

   8%   9%   10%   11%   12%
1   0.926   0.917   0.909   0.901   0.893
2   0.857   0.842   0.826   0.812   0.797
3   0.794   0.772   0.751   0.731   0.712
4   0.735   0.708   0.683   0.659   0.636
5   0.681   0.65   0.621   0.593   0.567

The IRR of the project will be ________.
A) between 11% and 12%
B) less than 10%
C) more than 12%
D) less than 11%, more than 10%
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
Will mark this subject solved, thanks
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7 years ago
I'm liking this Slight Smile
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3 years ago
thank you
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