Question & Answer: The following data pertain to an investment project: Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s…..

MC Qu. 73 (Ignore income taxes in this problem).. (Ignore income taxes in this problem.) The following data pertain to an investment project: Investment required. Annual savings... Life of the project.... Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables $15,057 $3,000 10 years The internal rate of return is closest to ○ 16% 14% 15% O 13%

The following data pertain to an investment project: Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. The internal rate of return is closest to: 16% 14% 15% 13%

Expert Answer

PV factor for IRR = Investment required/Annual savings = 15057/3000=							5.019
PF factor 5.019 for 10 years is closest to 15%
Option 3 is correct

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