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Determine the internal rate of return for each project

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Reference no: EM131804810

Question - Buerhle Company is considering three capital expenditure projects. Relevant data for the projects are as follows.

Project Investment Annual Income Life of Project

22A $240,000 $15,000 6 years 

23A 270,000 24,400 9 years 

24A 280,000 21,000 7 years 

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. Buerhle Company uses the straight-line method of depreciation.

Determine the internal rate of return for each project. (Use the tables to determine the percentage. Round answer 0 decimal places, e.g. 10.)

22A %

23A %

24A %

If Buerhle Company's required rate of return is 11%, which projects are acceptable?

Reference no: EM131804810

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