Question: Using an internal rate of return analysis, should he make the investment if his time value of money is 5%? IRR = _____ % Should

Using an internal rate of return analysis, should he make the

Using an internal rate of return analysis, should he make the investment if his time value of money is 5%?

IRR = _____ %

Should the investment be made?

Using an internal rate of return analysis, should he make the investment if his time value of money is 7%?

IRR =____ %

should the investment be made?

Using an internal rate of return analysis, for what time value of money value will he be indifferent in making versus not making the investment?

_________%

Mahmut Tutam is considering making an investment of $90,000 in a venture that is projected to yield annual returns over a 15-year period with the following cash flow profile: Year Year Cash Flow Year 1 6 11 2 7 Cash Flow $8,000 $9,000 $10,000 $11,000 $12,000 12 13 Cash Flow $13,000(0.9)5 $13,000(0.96 $13,000(0.9) $13,000(0.98 $13,000(0.9) $13,000 $13,000(0.9) $13,000(0.9) $13,000(0.9) 3 $13,000(0.9)4 3 8 4 9 14 5 10 15

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