Project cost $100 000 Estimated life 5 years Estimated residual value $20 000 Annual Net Cash flow $30 000 Required rate of return 10% Given...

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Finance

Project cost $100 000
Estimated life 5 years
Estimated residual value $20 000
Annual Net Cash flow $30 000
Required rate of return 10%
Given the data above, calculate the internal rate of return(IRR). (not using excel)

Answer & Explanation Solved by verified expert

3.7 Ratings (365 Votes)

Internal Rate of Return IRR for the Project Step 1 Firstly calculate NPV at a guessed discount Rate Say 19 R1 Year Annual Cash Flow Present Value factor at 19 Present Value of Cash Flow 1 30000 0840336 2521008 2 30000 0706165 2118494 3 30000 0593416 See Answer

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Project cost $100 000 Estimated life 5 years Estimated residual value $20 000 Annual Net Cash flow $30 000 Required rate of return 10% Given...

90.2K

Verified Solution

Question

Finance

Project cost $100 000
Estimated life 5 years
Estimated residual value $20 000
Annual Net Cash flow $30 000
Required rate of return 10%
Given the data above, calculate the internal rate of return(IRR). (not using excel)

Answer & Explanation Solved by verified expert

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Other questions asked by students

Project cost	$100 000
Estimated life	5 years
Estimated residual value	$20 000
Annual Net Cash flow	$30 000
Required rate of return	10%

Project cost $100 000 Estimated life 5 years Estimated residual value $20 000 Annual Net Cash flow $30 000 Required rate of return 10% Given...

90.2K

Verified Solution

Question

Finance

Project cost$100 000Estimated life5 yearsEstimated residual value$20 000Annual Net Cash flow$30 000Required rate of return10%Given the data above, calculate the internal rate of return(IRR). (not using excel)

Answer & Explanation Solved by verified expert

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Transcribed Image Text

Other questions asked by students

Project cost $100 000
Estimated life 5 years
Estimated residual value $20 000
Annual Net Cash flow $30 000
Required rate of return 10%
Given the data above, calculate the internal rate of return(IRR). (not using excel)