Consider the following example for the expected performance over the next 5 years Concept Check 2:...

Transcribed Image Text:

Consider the following example for the expected performance over the next 5 years Concept Check 2: What is the expected future IRR? End of Year 5 6 7 8 9 10 Capital $-70,979 $99,222 Cash Flow $6,156 $6,601 $7,054 $7,514 $7,980 TOTAL $-70,979 $6,156 $6,601 $7,054 $7,514 $107,202 IRR Consider the following example for the expected performance over the next 5 years Concept Check 2: What is the expected future IRR? End of Year 5 6 7 8 9 10 Capital $-70,979 $99,222 Cash Flow $6,156 $6,601 $7,054 $7,514 $7,980 TOTAL $-70,979 $6,156 $6,601 $7,054 $7,514 $107,202 IRR