Question

Ritter Razors is considering an equipment investment that will cost $950,000. Projected net cash inflows over the equipment’s three-year life are as follows: Year 1: $500,000; Year 2: $400,000; and Year 3: $300,000. Ritter wants to know the equipment’s IRR.
Requirement
Use trial and error to find the IRR within a 2% range. Optional: Use a business calculator to compute the exact IRR.


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  • CreatedApril 30, 2015
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