Liam bought a piece of equipment for $10,000. He paid $3,000 for upgrades during year 1 and

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Liam bought a piece of equipment for $10,000. He paid $3,000 for upgrades during year 1 and the equipment generates $2,000 in cash flow for year 1.

In year 2 the equipment generated $3,000 and in year 3 it generated $4,000, but Liam sells it for

$6,000 and pays a $500 commission. What is his IRR?

a. 3.4%.

b. 3.9%.

c. 4.4%.

d. 4.9%.

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Related Book For book-img-for-question

Fundamentals Of Financial Planning

ISBN: 9781936602094

3rd Edition

Authors: Michael A Dalton, Joseph Gillice

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Question Posted: Sep 11, 2024 09:01 AM

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Liam bought a piece of equipment for $10,000. He paid $3,000 for upgrades during year 1 and

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Fundamentals Of Financial Planning

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