4. A business generates an annual income of$50,000and a salvage value of$500,000in 10 years. How much would you pay for this to havei=10%?

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4. A business generates an annual income of$50,000and a salvage value of$500,000in 10 years. How much would you pay for this to havei=10%?

5. Determine IRR in problem 4 if you pay$490,000for the business. (percentage format)

 

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