A Project Is Estimated to Cost $248,400 and Provide Annual

question 36

Essay

A project is estimated to cost $248,400 and provide annual cash flows of $50,000 for 8 years. Determine the internal rate of return for this project, using the following present value of an annuity table. $$\begin{array} { l l l l } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 1.833 & 1.736 & 1.690 \\3 & 2.673 & 2.487 & 2.402 \\4 & 3.465 & 3.170 & 3.037 \\5 & 4.212 & 3.791 & 3.605 \\6 & 4.917 & 4.355 & 4.111 \\7 & 5.582 & 4.868 & 4.564 \\8 & 6.210 & 5.335 & 4.968 \\9 & 6.802 & 5.759 & 5.328 \\10 & 7.360 & 6.145 & 5.650\end{array}$$

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Definitions:

Representative Clade

A group of organisms that includes an ancestor and all of its descendants, representing a single branch on the tree of life.

Supergroup

In biology, a high-level classification rank above kingdom, used in some recent taxonomic systems to organize the diversity of life.

Trypanosomes

Single-celled parasitic organisms responsible for diseases like African sleeping sickness and Chagas' disease, transmitted by insect vectors.

Foraminiferans

Single-celled protists with shells, known for their role in marine ecosystems and as indicators of environmental change.