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An investor has the following series of cash flows. Initial investment Year 0 ($1,000,000) Cash flow Year 1 $40,000 Year 2 $45,000 Year 3 $50,000
An investor has the following series of cash flows.
Initial investment Year 0 ($1,000,000)
Cash flow Year 1 $40,000
Year 2 $45,000
Year 3 $50,000
Year 4 $40,000
Year 5 $60,000 per year
Sale proceeds Year 5 $1,300,000
Based on the above, what is the investment's Internal Rate of Return (IRR)?
Initial investment Year 0 ($1,000,000)
Cash flow Year 1 $40,000
Year 2 $45,000
Year 3 $50,000
Year 4 $40,000
Year 5 $60,000 per year
Sale proceeds Year 5 $1,300,000
Based on the above, what is the investment's Internal Rate of Return (IRR)?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
