IRR. XYZ, Inc., invested in a machine with a useful life of 6 years and no salvage value. The machine was depreciated using the straight-line method and it was expected to produce annual cash inflow...


IRR. XYZ, Inc., invested in a machine with a useful life of 6 years and no salvage value. The machine was depreciated using the straight-line method and it was expected to produce annual cash inflow from operations, net of income taxes, of $2,000. The present value of an ordinary annuity of $1 for six periods at 10 percent is 4.3553. The present value of $1 for six periods at 10 percent is 0.5645. Assuming that XYZ used an internal rate of return of 10 percent, what was the amount of the original investment?



May 05, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here