Refer to Woodsy Music in S12-10. What is the approximate internal rate of return (IRR) of the

Question:

Refer to Woodsy Music in S12-10. What is the approximate (IRR) of the studio investment?
Woodsy Music is considering investing $625,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $90,000 per year for the next nine years. Assuming that Woodsy Music uses an 8% hurdle rate.
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...