9 A project requiring an immediate investment of $130,000 and a further outlay of $44,000 after four years has aresidual value of $34,000 after nine years. The project yields a negative net return of $11,000 in Year 1, a 0 netreturn 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 =

Internal Rate of Return (IRR): It is the rate at which the net present value of an investment or a…

last un 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 =

last un 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 =

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 15PROB

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Question

A project requiring an immediate investment of $130,000 and a further outlay of $44,000 after four years has a
residual value of $34,000 after nine years. The project yields a negative net return of $11,000 in Year 1, a 0 net
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 =

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