Theta Company is considering three capital expenditure projects. - 10510

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $1.50
  • From: Business,
  • Posted on: Mon 28 May, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

 

Theta Company is considering three capital expenditure projects. Relevant data for the projects are as follows.

 

 

Project

Investment

Annual
Income

Life    
of Project

  

22A

$238,590

 

$13,302

 

6 years

 

    

23A

267,290

 

20,848

 

9 years

 

 

24A

286,720

 

20,018

 

8 years

 

 

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. Theta Company uses the straight-line method of depreciation.

 

Instructions

 

Determine the internal rate of return for each project. (Round the internal rate of return factor to three decimal places, e.g. 2.250.  Round final answers to 0 decimal places, e.g. 125.)

 

Solution Description

 

Please give me your A+++ rating in it and you will get t

Attachments
AE26-1 Solution.docx
AE26-1 Solution...