310chapter16m7

Purchased chapter16module7irr start by calculating

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: apital should the new machine be purchased? purchased? Chapter 16 Module 7: IRR Start by calculating the IRR Factor: Start by calculating the IRR Factor: IRR Factor = Initial investment ÷ Annual cash inflows $104, 320 $20,000 = 5.216 Chapter 16 Module 7: IRR Now, use the present value of an annuity table . . . Find the 10-period row, move Find across until you find the factor 5.216. Look at the top of the column and you find a rate of 14%. 14% Periods 1 2 ... 9 10 10% 0.909 1.736 ... 5.759 6.145 1...
View Full Document

Ask a homework question - tutors are online