Ueker Company is considering three capital expenditure projects. Relevant data f
ID: 2473350 • Letter: U
Question
Ueker Company is considering three capital expenditure projects. Relevant data for the projects are as follows.
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.)
Income Life of
Project 22A $244,270 $16,930 6 years 23A 274,270 20,630 9 years 24A 283,320 18,350 7 years
Explanation / Answer
Annual cash flows are not good as the NPV of all the three projects are negative i am not getting the NPV positive even without discounting the cash flows hence the IRR of the project cannot be calculated
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