Shields Company has gathered the following data on a proposed investment project
ID: 2381704 • Letter: S
Question
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)
The internal rate of return on the investment is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.)
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) The internal rate of return on the investment is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.) 6% 8% 4% 2%Explanation / Answer
$620,000/$86000=7.200
From exhibit table :6% to 7%
By interpolation we get :6.44%
hence IRR is nearest to 6%