What would be the rate of return (IRR) on a project that had an initial cost of $100,000 today and $200,000 in 5 years from today BUT returns $50,000 at the end of the year for 10 years. Further, there would be a one-time payment received (income) of $70,000 at the end of the 10th year.
What would be the rate of return (IRR) on a project that had an initial cost of $100,000 today and $200,000 in 5 years from today BUT returns $50,000 at the end of the year for 10 years. Further, there would be a one-time payment received (income) of $70,000 at the end of the 10th year.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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