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6. Custom Shades is considering an investment in a 4 year project. It will provide a 13% internal rate of return, and is expected to
6. Custom Shades is considering an investment in a | 4 | year project. | ||||||
It will provide a | 13% | internal rate of return, and is expected to have a | $44,000 | |||||
cash inflow in the first year, | $63,000 | in the 2nd year, and | $51,000 | in the last two years. | ||||
What is the maximum initial investment that would support this internal rate of return and the | ||||||||
three cash inflows indicated above? | ||||||||
Initial investment | Initial investment | Years | ||||||
Cashflow year | 1 | 13% | ||||||
Cashflow year | 2 | |||||||
Cashflow year | 3 | |||||||
Cashflow year | 4 | |||||||
Cashflow year | ||||||||
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