Calculate the Internal Rate of Return on the Following Projects

question 150

Essay

Calculate the internal rate of return on the following projects:
a.Initial outlay of $60,500 with an after-tax cash flow of $11,897 per year for eight years.
b.Initial outlay of $647,000 with an after-tax cash flow of $118,000 per year for ten years.
c.Initial outlay of $25,400 with an after-tax cash flow $11,788 per year for three years.

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Definitions:

Firm Offer

A binding proposal to sell or buy goods that holds the offering party to its terms for a certain period.

Merchant

An individual or company engaged in the business of buying and selling goods for profit.

Misprint

An error in printing that results in incorrect text, images, or formatting being produced.

Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise when the promisee has reasonably relied on the promise to their detriment.