1. An ICT project has the following characteristics: annual costs are committed at the beginning of each year, and these are the only costs during the year. Cost at the beginning of year Value (KSh.)...


1. An ICT project has the following characteristics: annual costs are committed at the beginning of each<br>year, and these are the only costs during the year.<br>Cost at the beginning of year<br>Value (KSh.)<br>1<br>250,000<br>2<br>300,000<br>650,000<br>4<br>450,000<br>5<br>400,000<br>Total<br>2,050,000<br>It is anticipated that when the project is completed at the end of year 5 it will generate an income of<br>KSh. 3,200,000. What would be the internal rate of return (IRR)?<br>Use the shown discount table.<br>Periods<br>4%<br>5%<br>6%<br>7%<br>8%<br>9%<br>10%<br>11%<br>12%<br>13%<br>14%<br>15%<br>20%<br>25%<br>30%<br>0943<br>0917<br>0.842<br>0.833<br>1<br>0.962<br>0952<br>0.935<br>0.926<br>0.909<br>0.901<br>0.893<br>0.885<br>0877<br>0.870<br>0.769<br>0.800<br>0.640<br>2<br>0.925<br>0.907<br>0.890<br>0.873<br>0.857<br>0.826<br>0.812<br>0.797<br>0.783<br>0.769<br>0.675<br>0.592<br>0.756<br>0.694<br>0.592<br>0.751<br>0.683<br>0.693<br>0.613<br>0.543<br>0.480<br>3<br>0.889<br>0.855<br>0.864<br>0.823<br>0.840<br>0.792<br>0.816<br>0.763<br>0.794<br>0.735<br>0.772<br>0.708<br>0.731<br>0.659<br>0.712<br>0.636<br>0.658<br>0.572<br>0.579<br>0.512<br>0.410<br>0.455<br>0.350<br>0.482<br>5<br>0.784<br>0.746<br>0.711<br>0.497<br>0.432<br>0.376<br>0.327<br>0.284<br>0.269<br>0.207<br>0.159<br>0.123<br>0.094<br>0.073<br>0.822<br>0.747<br>0.713<br>0.666<br>0.681<br>0.650<br>0.621<br>0.593<br>0.567<br>0.519<br>0.402<br>0.328<br>0.790<br>0.760<br>0.705<br>0.665<br>0.630<br>0.583<br>0.596<br>0.547<br>0.564<br>0.513<br>0.507<br>0.452<br>0.535<br>0.482<br>0.434<br>0.391<br>0.456<br>0.400<br>0.335<br>0.279<br>0.233<br>0.194<br>0.262<br>0.210<br>0.623<br>0.425<br>0.376<br>0.731<br>0.703<br>0.677<br>0.645<br>0.627<br>0.592<br>0.582<br>0.544<br>0.508<br>0.540<br>0.500<br>0.463<br>0.502<br>0.460<br>0.467<br>0.424<br>0.404<br>0.361<br>0.351<br>0.308<br>0.168<br>0.134<br>0.333<br>10<br>0.676<br>0.614<br>0.58<br>0.422<br>0.386<br>0.352<br>0.322<br>0.295<br>0270<br>0.247<br>0. 162<br>0.107<br>

Extracted text: 1. An ICT project has the following characteristics: annual costs are committed at the beginning of each year, and these are the only costs during the year. Cost at the beginning of year Value (KSh.) 1 250,000 2 300,000 650,000 4 450,000 5 400,000 Total 2,050,000 It is anticipated that when the project is completed at the end of year 5 it will generate an income of KSh. 3,200,000. What would be the internal rate of return (IRR)? Use the shown discount table. Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 20% 25% 30% 0943 0917 0.842 0.833 1 0.962 0952 0.935 0.926 0.909 0.901 0.893 0.885 0877 0.870 0.769 0.800 0.640 2 0.925 0.907 0.890 0.873 0.857 0.826 0.812 0.797 0.783 0.769 0.675 0.592 0.756 0.694 0.592 0.751 0.683 0.693 0.613 0.543 0.480 3 0.889 0.855 0.864 0.823 0.840 0.792 0.816 0.763 0.794 0.735 0.772 0.708 0.731 0.659 0.712 0.636 0.658 0.572 0.579 0.512 0.410 0.455 0.350 0.482 5 0.784 0.746 0.711 0.497 0.432 0.376 0.327 0.284 0.269 0.207 0.159 0.123 0.094 0.073 0.822 0.747 0.713 0.666 0.681 0.650 0.621 0.593 0.567 0.519 0.402 0.328 0.790 0.760 0.705 0.665 0.630 0.583 0.596 0.547 0.564 0.513 0.507 0.452 0.535 0.482 0.434 0.391 0.456 0.400 0.335 0.279 0.233 0.194 0.262 0.210 0.623 0.425 0.376 0.731 0.703 0.677 0.645 0.627 0.592 0.582 0.544 0.508 0.540 0.500 0.463 0.502 0.460 0.467 0.424 0.404 0.361 0.351 0.308 0.168 0.134 0.333 10 0.676 0.614 0.58 0.422 0.386 0.352 0.322 0.295 0270 0.247 0. 162 0.107

Jun 09, 2022
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