A small company purchased now for $23,000 will lose $1,200 each year the first four years. An

Question:

A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000.
a. Determine the IRR.
b. Calculate the FW if = 12%.
c. Calculate the ERR when e = 12%.
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...