Candela Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of five years with no residual value
The cash flows are as shown below:
Year 1 $120,000
2 235,000
3 140,000
4 98,000
The present value of $1:
10% 11% 12% 13% 14%
1 0.909 0.901 0.893 0.885 0.877
2 0.826 0.812 0.797 0.783 0.769
3 0.751 0.731 0.712 0.693 0.675
4 0.683 0.659 0.636 0.613 0.592
5 0.621 0.593 0.567 0.543 0.519
The IRR of the project would be ________.
A) between 12% and 13%
B) more than 13%
C) less than 10%
D) between 9% and 10%
A .A)
At 10% $120,000 0.909 $109,080
$235,000 0.826 194,110
$140,000 0.751 105,140
$98,000 0.683 66,934
(450,000 )
Net Present Value $25,264
At 12% $120,000 0.893 $107,160
$235,000 0.797 187,295
$140,000 0.712 99,680
$98,000 0.636 62,328
(450,000 )
Net Present Value $6,463
At 13% $120,000 0.885 $106,200
$235,000 0.783 184,005
$140,000 0.693 97,020
$98,000 0.613 60,074
(450,000 )
Net Present Value $(2,701 )
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The Environmental Protection Agency:
a) is a legislative branch regulatory agency. b) was created in 1990 to consolidate environmental programs scattered throughout the federal government. c) writes detailed, specific rules needed to make environmental laws work. d) cannot enforce rules directly on corporations.
The primary effect of the 1984 and 1986 amendments to the Resource Conservation and Recovery Act was to ________
A) make landfills a last resort for the disposal of many types of waste B) have safer transportation for hazardous waste C) create more efficient storage facilities for hazardous waste D) provide licenses for producers and transporters of hazardous waste