Memil Corp has the following Iinformation available about a potertial capital in
ID: 2508485 • Letter: M
Question
Memil Corp has the following Iinformation available about a potertial capital investment $1,400,000 40,000 Expected ife Salvage vakue S 150,000 10% Asaume straight ine depreciation method is used project's nel present value. (Esthure Value cf $1. Eresert Vsue of $1,Future Value Arnuity of $1. calculations. Round the final answer to nearest whole dollar.) Present Vale Annuty of 51.) (Use sppropriate factorfs) from the tables provided. Do not round intermediat 2. Without making any calulations, determire whether the intemai rate of rm RR) is more or less then 10 Less than 10 Pencent an 10 Parcen Ancuty ot S1. Pissent yaue Aveuty o S13 (Use appropriase factorts) frem the tables provided Do not Withat making any cecuilations, Getermine were innumal nate of neturn IRRI is more or less t than 13 pencen More than 1 3 peront
Explanation / Answer
1.
Working:
2. Internal Rate of Return is less than 10%
3.
Working:
4. Internal rate of return is less than 13%.
Net Present Value -583139