What is the approximate internal rate of return


Use the following table,
Present Value of an Annuity of 1
Period 8% 9% 10%
1 .926 .917 .909
2 1.783 1.759 1.736
3 2.577 2.531 2.487

A company has a minimum required rate of return of 8% and is considering investing in a project that costs $136,674 and is expected to generate cash inflows of $54,000 each year for three years. what is the approximate internal rate of return on this project ?

 

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Accounting Basics: What is the approximate internal rate of return
Reference No:- TGS060102

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