36) Managerial Financial Accounting Assignments AE9-9 Solution

36) Managerial Financial Accounting Assignments AE9-9 Solution

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AE9-9 Calculate the Internal Rate of Return [LO 3] An investment that costs $142,173 will reduce operating costs by $22,000 per year for 15 years.
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Determine the internal rate of return of the investment (ignore taxes). (Round present value factor calculations to 4 decimal places, e.g. 2.2512 and the final answer to 0 decimal places, e.g. 25%.) Internal rate of return [no answer]% AE9-9 Initial outlay $142,173
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Unformatted text preview: Annuity amount 22,000 Outlay annuity amount = PV of annuity factor 6.4624 Internal rate of return 13% Should the investment be undertaken if the required rate of return is 16 percent? Yes Click here if you would like to Show Work for this question AE9-9 No . The investment should not be undertaken because the internal rate of return of 13% is less than the required rate of 16%....
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36) Managerial Financial Accounting Assignments AE9-9 Solution

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