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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 Summary

Response provides the steps to compute 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% ...

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