The Marketing Department has completed its estimates of cash flows for your project and has given you the table below:YearExpensesRevenue-10,000-2,000-2,000-2,000-2,000-2,000012O b. 20%O c. 30%d. 10%O e. 15%345678910Compute the rate of return (i*):a. answer not given-2,000-2,000-2,000-2,000-2,00004,4664,4664,4664,4664,4664,4664,4664,4664,4664,466

IRR is where NPV is zero. IRR is internal rate of return. NPV is net present value.

The Marketing Department has completed its estimates of cash flows for your project and has given you the table below: Year Expenses Revenue -10,000 -2,000 0 1 2 O b. 20% O c. 30% d. 10% O e. 15% 3 4 5 6 7 8 9 10 Compute the rate of return (i*): a. answer not given -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 0 4,466 4,466 4,466 4,466 4,466 4,466 4,466 4,466 4,466 4,466

The Marketing Department has completed its estimates of cash flows for your project and has given you the table below: Year Expenses Revenue -10,000 -2,000 0 1 2 O b. 20% O c. 30% d. 10% O e. 15% 3 4 5 6 7 8 9 10 Compute the rate of return (i*): a. answer not given -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 0 4,466 4,466 4,466 4,466 4,466 4,466 4,466 4,466 4,466 4,466

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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