Answered step by step
Verified Expert Solution
Question
1 Approved Answer
End of Year Net Cash Flow 0 -$450,000 1 -$42,500 2 $92,800 3 $386,000 4 $614,600 5 -$202,200 Experts agree that the IRR of a
End of Year | Net Cash Flow |
0 | -$450,000 |
1 | -$42,500 |
2 | $92,800 |
3 | $386,000 |
4 | $614,600 |
5 | -$202,200 |
Experts agree that the IRR of a college education is about 12%/yr. This results from the increased earnings over your lifetime. Draw a CFD that supports the 12% annual return over the 40 years of your career. State your assumptions.
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