The Blue Sky Ski Resort plans to install a new chair lift. Construction is estimated...
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Accounting
The Blue Sky Ski Resort plans to install a new chair lift. Construction is estimated to require an immediate outlay of $220,000. The life of the lift is estimated to be fifteen years with a salvage value of $75,000. Cost of clearing and grooming the new area is expected to be $35,000 for each of the first three years of operation. Net cash inflows from the lift are expected to be $38,000 for each of the first five years and $80,000 for each of the following ten years. Calculate the internal rate of return (IRR).
The internal rate of return is____%. (Round to the nearest tenth)
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