You are also considering a second business opportunity: Supplying fish, fresh from the bottom of the...
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You are also considering a second business opportunity: Supplying fish, fresh from the bottom of the Charles River, to Harvard Dining Services, for the next three years in return for an up-front payment from them of $10,000. You figure it will cost you $4,000 a year in supplies to provide this culinary joy. So, the revenue and costs of the project can be summarized as follows: Immediate and only revenue: Costs in Year 1: Costs in Year 2: Costs in Year 3: Find this project's internal rate of return (IRR). Provide an explanation and show your calculations. $10,000 $ 4,000 $4,000 $4,000 You are also considering a second business opportunity: Supplying fish, fresh from the bottom of the Charles River, to Harvard Dining Services, for the next three years in return for an up-front payment from them of $10,000. You figure it will cost you $4,000 a year in supplies to provide this culinary joy. So, the revenue and costs of the project can be summarized as follows: Immediate and only revenue: Costs in Year 1: Costs in Year 2: Costs in Year 3: Find this project's internal rate of return (IRR). Provide an explanation and show your calculations. $10,000 $ 4,000 $4,000 $4,000
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To calculate the internal rate of return IRR for the fish supply project we need to find the discoun... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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