What is the internal rate of return for project gray, Accounting Basics

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What is the internal rate of return for project gray

Fehr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Project Blue Project Gray
Initial investment $400,000 $600,000
Annual net income 20,000 42,000
Net annual cash inflow 100,000 142,000
Estimated useful life 5 years 6 years
Salvage value 0 0

The company requires a 10% rate of return on all new investments.
Present Value of an Annuity of 1
Periods 9% 10% 11% 12%
5 3.890 3.791 3.696 3.605
6 4.486 4.355 4.231 4.111

what is the internal rate of return for Project Gray ?

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Accounting Basics: What is the internal rate of return for project gray

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Recent Questions Asked Accounting Basics

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Ask an Expert for Answer!!

Accounting Basics: What is the internal rate of return for project gray

Reference No:- TGS072553

Recent Questions Asked Accounting Basics

Q : System of rules and new rule development

Q : Define operations management

Q : Write down equations for the is curve and the lm curve

Q : By how much would gorgas profits change

Q : What is the internal rate of return for project gray

Q : Explain power to raise wages in terms of demand elasticity

Q : What is the approximate internal rate of return

Q : Volume-based cost drivers and activity-based cost drivers

Q : What is the approximate internal rate of return

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