An investment of $100,000 will yield annual profits of $16,000 for 10 years. The proceeds on disposition

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An investment of $100,000 will yield annual profits of $16,000 for 10 years. The proceeds on disposition at the end of the 10 years are estimated at $25,000. On the basis of its IRR and a 12% cost of capital, should the investment be made?

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Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

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Question Posted: Jan 20, 2016 08:20 AM

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An investment of $100,000 will yield annual profits of $16,000 for 10 years. The proceeds on disposition

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The investments IRR is the value of i satisfying NPV 0 The in...View the full answer

Business Mathematics In Canada

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