A $100,000 capital investment will produce annual profits of $20,000 for the first five years and…

A $100,000 capital investment will produce annual profits of $20,000 for the first five years and $15,000 for the next five years. It will have no residual value. What is its IRR? Should it be undertaken if the cost of capital is 12%? View Solution:
A 100 000 capital investment will produce annual profits of 20 000