An investment that Kevin is considering offers the following cash flows. Year 1 Initial investment of $150,000

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An investment that Kevin is considering offers the following cash flows.

Year 1 Initial investment of $150,000

Year 2 Inflow of $55,300

Year 3 Inflow of $27,500

Year 4 Additional investment of $15,000

Year 5 Inflow of $68,900

Year 6 Inflow of $72,600

Year 7 Additional investment $21,900

Year 8 Inflow of $51,050

Year 9 Inflow of $121,750

Year 10 Sale proceeds of $120,000

What is the internal rate of return (IRR) that this investment offers if all cash flows occur at the end of each period?

Related Book For answer-question

Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Dec 28, 2023 12:17 AM

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An investment that Kevin is considering offers the following cash flows. Year 1 Initial investment of $150,000

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SOLUTION To calculate the internal rate of return IRR for this investment we need to find the discount rate that makes the present value of the cash f... View the full answer

Corporate Finance

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