Question
1) Compute the internal rate of return for the following cash flows: Period 0: -1900 Period 1: 1100 Period 2: 800 Period 3: 500 Enter
1) Compute the internal rate of return for the following cash flows:
Period 0: -1900
Period 1: 1100
Period 2: 800
Period 3: 500
Enter your answer in percent and round to the nearest 0.01.
2) Compute the modified internal rate of return for the following cash flows using a discount rate of 11.0%:
Period 0: -1684.0
Period 1: 767.0
Period 2: 782.0
Period 3: 724.0
Enter your answer in percent and round to the nearest 0.01%.
3) Machinery costs $1 million today and $100,000 per year to operate. It lasts for 14.0 years. What is the equivalent annual annuity if the discount rate is 8.0%? Enter your answer in dollars and round to the cent. Remember that costs are negative cash flows; so, include the negative sign.
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