Question

Check my work Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Part 2 of 2 Park Co. is considering an investment that requires immediate payment of $29,480 and provides expected cash inflows of $9,100 annually for four years. Park Co. requires a 8% return on its investments. 1.25 points QS 24-3 Internal rate of return LO P4 eBook Hint 1-a. What is the internal rate of return? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Ask Print References

Answer 1

Requirement A Present value Factor Internal Rate of Return 3.2396 9% Note : Present Value of Annuity Factor for $1 ; n=4 and r=9% is 3.2397 Present Value Factor = Amount Invested / Annual Net Cash Flow $29480 / $9100 3.2396