Ueker Company is considering three capital expenditure projects. Relevant data f
ID: 2487126 • Letter: U
Question
Ueker Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Project Investment Annual Income Life of Project
22A $244,080 $16,730 6 years
23A 272,850 20,990 9 years
24A 283,970 18,240 7 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. Ueker Company uses the straight-line method of depreciation. Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 10.)
Project Internal Rate of Return
22A %
23A %
24A %
Explanation / Answer
Calculation of IRR using MS- Excel IRR Function
22 A
22 B
22 C
Year Cash Flow 0 -244080 1 16730 2 16730 3 16730 4 16730 5 16730 6 16730 IRR -21%Related Questions
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