Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

calculate the irr of an initial investment $95,000 Working capital deposit $5,000 Operations (per year for 4 years) Trucking revenue Less: Driver's salary $250,000 $95,000

calculate the irr of an initial investment $95,000 Working capital deposit $5,000 Operations (per year for 4 years) Trucking revenue Less: Driver's salary $250,000 $95,000 Insurance Fuel and maintenance $50,000 Total expenses $20,000 $165,000 Net annual cash flows $85,000 Disinvestment Sale of truck Recovery of working capital $2,000 Total disinvestment $25,000 $27,000, and an 8% Discount rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Forecasting

Authors: John E. Hanke, Dean Wichern

9th edition

132301202, 978-0132301206

More Books

Students also viewed these Finance questions