Clear Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value.The cash inflows are as shown below:

Present value of an ordinary annuity of $1:

Present value of $1:

Calculate the IRR of the project.Show your computations.

Question

Clear Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value.The cash inflows are as shown below:
  
Present value of an ordinary annuity of $1:
  
Present value of $1:
  
Calculate the IRR of the project.Show your computations.

Quizplus · Accepted Answer

The Answer of Clear Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value.The cash inflows are as shown below:
  
Present value of an ordinary annuity of $1:
  
Present value of $1:
  
Calculate the IRR of the project.Show your computations.

Clear Cable Company Is Considering Investing $450,000 in Telecommunications Equipment