Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started