Current Attempt in Progress
Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows.
tableProjectInvestment,tableAnnualIncometableLife ofProjectA$$ years years 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. Iggy Company uses the straightline method of depreciation.
Click here to view the factor table.
a
Determine the internal rate of return for each project. Round answers decimal places, eg For calculation purposes, use decimal places as displayed in the factor table provided.
b
If Iggy Company's required rate of return is which projects are acceptable?
The following projects are acceptable
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