Answered: Find the internal rate of return for…

Find the internal rate of return for the following investment (yes I want the actual rate). Is it a good idea if MARR=10%? Year -160,400 1 75,000 2 -32,000 3 55,000 32,500 69,500

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 8P

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Question

Find the internal rate of return for the following investment (yes I want the actual rate). Is it a good idea if MARR=10%?
Year
-160,400
1
75,000
2
-32,000
3
55,000
4
32,500
5
69,500

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