# Managerial Accounting: E12-7 Ueker Company is considering three capital expenditure

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Managerial Accounting

Exercise 12-7

Ueker Company is considering three capital expenditure projects. Relevant data for the projects are as follows.

Project Investment Annual Income Life of Project

22A 241,810 17,360 6 years

23A 272,760 20,800 9 years

24A 281,040 18,420 7 years

Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Ueker Company uses the straight-line method of depreciation.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

a. Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 10.)

If this tutorial is different from your questions, the format of the solution is the same. If you need more assistance, please email us.

Managerial Accounting

Exercise 12-7

Ueker Company is considering three capital expenditure projects. Relevant data for the projects are as follows.

Project Investment Annual Income Life of Project

22A 241,810 17,360 6 years

23A 272,760 20,800 9 years

24A 281,040 18,420 7 years

Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Ueker Company uses the straight-line method of depreciation.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

a. Determine the internal rate of return for each project. (Round answers 0 decimal places, e.g. 10.)

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