What is the internal rate of return on the investment? a. 10% b.11% c. 12% d. 9%

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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You have the following information on a potential investment.
Capital investment
$900,000
Estimated useful life
6 years
Estimated salvage value
0
Estimated annual net cash inflow $213,000
Required rate of return
10%
What is the internal rate of return on the investment?
a. 10%
b. 11%
c. 12%
d. 9%
Transcribed Image Text:You have the following information on a potential investment. Capital investment $900,000 Estimated useful life 6 years Estimated salvage value 0 Estimated annual net cash inflow $213,000 Required rate of return 10% What is the internal rate of return on the investment? a. 10% b. 11% c. 12% d. 9%
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