An item of equipment was purchased four years ago at $50,000 and it had a life...
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An item of equipment was purchased four years ago at $50,000 and it had a life of four years. The investment gave rise to actual annual cash receipts of $15,000, $20,500, $25,500, and $29,000 respectively in the past four years. The average rate of inflation over these years was 11% per annum. Find the real IRR and apparent IRR. An item of equipment was purchased four years ago at $50,000 and it had a life of four years. The investment gave rise to actual annual cash receipts of $15,000, $20,500, $25,500, and $29,000 respectively in the past four years. The average rate of inflation over these years was 11% per annum. Find the real IRR and apparent IRR.
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SOLUTION Real Internal Rate of Return IRR The real internal rate of return IRR measures the rate of ... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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