Gossman Corporation is analyzing a capital expenditure that will involve a cash outlay of P104,904. Estimated cash flows are expected to be P36,000 annually for four years. The present value factors for an annuity of P1 for 4 years at interest of 10%, 12%, 14%, and 15% are 3.170, 3.037, 2.914, and 2.855, respectively. The internal rate of return for this investment is? a. 2% b. 2.4% c. 14% d. 3%

Gossman Corporation is analyzing a capital expenditure that will involve a cash outlay of P104,904. Estimated cash flows are expected to be P36,000 annually for four years. The present value factors for an annuity of P1 for 4 years at interest of 10%, 12%, 14%, and 15% are 3.170, 3.037, 2.914, and 2.855, respectively. The internal rate of return for this investment is? a. 2% b. 2.4% c. 14% d. 3%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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