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Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):...

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Accounting

Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):

Investment required in equipment $ 35,500

Annual cash inflows $ 8,200

Salvage value of equipment $ 0

Life of the investment 15 years

Required rate of return 10 %

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

What is the internal rate of return of the investment is closest to?

Multiple Choice 24% 22% 20% 26%

Please include the work to solution so I can actually understand how to solve myself in the future. Thanks!

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