A project is estimated to cost $248,400 and provide annual cash flows of $50,000 for 8 years. Determine the internal rate of return for this project, using the following present value of an annuity table. $$\begin{array} { l l l l }
\text { Year } & 6 \% & 10 \% & 12 \% \
\hline 1 & 0.943 & 0.909 & 0.893 \
2 & 1.833 & 1.736 & 1.690 \
3 & 2.673 & 2.487 & 2.402 \
4 & 3.465 & 3.170 & 3.037 \
5 & 4.212 & 3.791 & 3.605 \
6 & 4.917 & 4.355 & 4.111 \
7 & 5.582 & 4.868 & 4.564 \
8 & 6.210 & 5.335 & 4.968 \
9 & 6.802 & 5.759 & 5.328 \
10 & 7.360 & 6.145 & 5.650
\end{array}$$

Question

A project is estimated to cost $248,400 and provide annual cash flows of $50,000 for 8 years. Determine the internal rate of return for this project, using the following present value of an annuity table. $$\begin{array} { l l l l } 
\text { Year } & 6 \% & 10 \% & 12 \% \
\hline 1 & 0.943 & 0.909 & 0.893 \
2 & 1.833 & 1.736 & 1.690 \
3 & 2.673 & 2.487 & 2.402 \
4 & 3.465 & 3.170 & 3.037 \
5 & 4.212 & 3.791 & 3.605 \
6 & 4.917 & 4.355 & 4.111 \
7 & 5.582 & 4.868 & 4.564 \
8 & 6.210 & 5.335 & 4.968 \
9 & 6.802 & 5.759 & 5.328 \
10 & 7.360 & 6.145 & 5.650
\end{array}$$

Quizplus · Accepted Answer

The Answer of A project is estimated to cost $248,400 and provide annual cash flows of $50,000 for 8 years. Determine the internal rate of return for this project, using the following present value of an annuity table. $$\begin{array} { l l l l } 
\text { Year } & 6 \% & 10 \% & 12 \% \
\hline 1 & 0.943 & 0.909 & 0.893 \
2 & 1.833 & 1.736 & 1.690 \
3 & 2.673 & 2.487 & 2.402 \
4 & 3.465 & 3.170 & 3.037 \
5 & 4.212 & 3.791 & 3.605 \
6 & 4.917 & 4.355 & 4.111 \
7 & 5.582 & 4.868 & 4.564 \
8 & 6.210 & 5.335 & 4.968 \
9 & 6.802 & 5.759 & 5.328 \
10 & 7.360 & 6.145 & 5.650
\end{array}$$

A Project Is Estimated to Cost $248,400 and Provide Annual