A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteen year. At the end of 15 ^th year, the company can be sold for $33,000.

  (1) Determine the IRR.

  (2) Calculate the Future Worth (FW) if MARR = 12%.

[IRR method and FW method.]

Answer rating: 100% (QA)

a PWi 230001200 PA i 4 8000 PF i 4 5500 PA i 11PF ... View the full answer