The Dallas Development Corporation is considering the purchase of an apartment project for $$ 100,000$. They estimate
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The Dallas Development Corporation is considering the purchase of an apartment project for $\$ 100,000$. They estimate that they will receive $\$ 15,000$ at the end of each year for the next 10 years. At the end of the 10th year, the apartment project will be worth nothing. If Dallas purchases the project, what will be its internal rate of return? If the company insists on a $9 \%$ return compounded annually on its investment, is this a good investment?
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To solve the internal rate of return we need to find the internal rate of return IRR of the investme...View the full answer
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