Question

Please help! You've never done me wrong yet!

1A:

Question 1 --/1 View Policies Current Attempt in Progress Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $166,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $32,982. Click here to view PV table. What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.) Internal rate of return

1B:1C:

Answer 1

Insert Page Layout Formulas Data Review View Help Search Share = == D Times New Roman 14 AA BIUDA 8 Wrap Text Merge & Center Accounting CE %, 28 0 Paste - O Insert Delete Format Ideas Conditional Format as Formatting Table Styles Cell Styles Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas C30 1 SOLUTION TO QUESTION-1 Year's Annual cash flow (S) emin o 1 2 L L -1,66,000 32,982 32,982 32,982 32.982 32,982 32,982 32,982 o o Internal rate of return (IRR) = 9% o No

fx W @ @ 2 A @ @ @ O G Define Name - 2 Calculate Now Insert Function AutoSum Recently Financial Logical Text Date & Lookup & Math & Used Time Reference Trig Function Library More Functions Define Name GUse in Formula Name Manager Ed Create from Selection Defined Names Ey Trace Precedents at Show Formulas Ca Trace Dependents Error Checking FRemove Arrows Evaluate Formula Formula Auditing Watch Window Calculation Calculate Sheet Options Calculation B14 X f x EIRR(B5:312) SOLUTION TO QUESTION-1 2 3 Year's Annual cash flow (S) 50 6 1 72 8 3 1-166000 32982 32982 32982 32982 32982 32982 32982 10 5 11 6 127 13 Internal rate of return (IRR) = =IRR(B5:B12) 17