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    Internal rate of return for an investment proposal

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    The following data pertains to an investment proposal:

    Required investment $400,000
    Annual cost savings $105,700
    Projected life of investment 6 years
    Projected salvage value $0
    Required rate of return 12%

    Ignoring income taxes, the internal rate of return on this investment is closest to:

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    Solution Preview

    The following data pertains to an investment proposal: Required investment $400,000 Annual cost savings $105,700 Projected life of investment 6 years Projected salvage value $0 Required rate of return 12% ...

    Solution Summary

    Response provides the steps to compute internal rate of return for an investment proposal

    $2.19

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