A project requiring an immediate investment of $130,000 and a further outlay of $44,000 after four years has residual value of $34,000 after nine years. The project yields a negative net return of $11,000 in Year 1, a 0 ne return in Year 2, $50,000 per year for the following four years, and $68,000 per year for the last three years. Your answer must be correct to exactly 4 decimal places and must not include the percent sign, "%". Use Excel's Internal Rate of Return Function, do not calculate this by hand. Internal Rate of Return =
A project requiring an immediate investment of $130,000 and a further outlay of $44,000 after four years has residual value of $34,000 after nine years. The project yields a negative net return of $11,000 in Year 1, a 0 ne return in Year 2, $50,000 per year for the following four years, and $68,000 per year for the last three years. Your answer must be correct to exactly 4 decimal places and must not include the percent sign, "%". Use Excel's Internal Rate of Return Function, do not calculate this by hand. Internal Rate of Return =
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 15PROB
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