Singular Construction is calculating whether to build a new distribution facility. The proposal investment will cost Singular

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Singular Construction is calculating whether to build a new distribution facility. The proposal investment will cost Singular $ 4 million to construct and provide cash savings of $ 500,000 per year over the next ten years.
a. What rate of return does the investment offer?
b. If Singular were to invest another $ 200,000 in the facility at the end of five years, it would extend the life of the project by four years, during which time it would continue receiving cash savings of $ 500,000. What is the internal rate of return for this investment?
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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