Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0,683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.505 sing the tables provided, the internal rate of return of an investment of $227,460 that would ge a. 12% b. 6% 10% d. cannot be determined from the data given 34

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following is a table for the present value of $1 at compound interest:
Year
6%
10%
12%
1
0.943
0.909
0.893
2
0.890
0.826
0,797
3
0.840
0.751
0.712
4
0.792
0,683
0.636
5 0.747
0.621
0.567
Following is a table for the present value of an annuity of $1 at compound interest:
Year 6%
10%
12%
1
0.943
0.909
0.893
2
1.833
1.736
1.690
2.673
2.487
2.402
4
3.465
3.170
3.037
5
4.212
3.791
3.605
Using the tables provided, the internal rate of return of an investment of $227,460 that would generate an annual
is
Oa. 12%
Ob. 6%
Oc. 10%
Od. cannot be determined from the data given
3
Transcribed Image Text:Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0,797 3 0.840 0.751 0.712 4 0.792 0,683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the internal rate of return of an investment of $227,460 that would generate an annual is Oa. 12% Ob. 6% Oc. 10% Od. cannot be determined from the data given 3
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