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Business, 05.06.2020 16:58 madeleine1102

Kenner Company is considering two projects. Project A Project B

Initial investment $85,000 $24,000

Annual Cash Flows $20,676 $6,011

Life of the Project 6 years 5 years

Depreciation per year $14,167 $4,800

Present value of an Annuity of $1 in Arrears

Periods 8% 10% 12 % 14 %

1 0.926 0.909 0.893 0.877

2 1.783 1.736 1.690 1.647

3 2.577 .487 2.402 .322

4 3.312 3.170 3.037 .914

5 3.993 3.791 3.605 14.433

6 4.623 14.355 4.111 3.889

7 5.206 14.868 4.564 14.288

8 5.747 5.335 4.968 4.639

9 6.247 5.759 5.328 4.946

10 6.710 6.145 5.650 5.216

Required:

a. Which of the two projects, A or B, is better in terms of internal rate of return?

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Answers: 2

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Kenner Company is considering two projects. Project A Project B

Initial investment $85...
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