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Help me solve this sum You are thinking of starting an energy drink business that requires an initial investment of $17,000 and a major replacement
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You are thinking of starting an energy drink business that requires an initial investment of $17,000 and a major replacement of equipment after 10 years, amounting to $8,800. From competitive experience you expect to have a net loss of $1,700 the first year, a net profit of $2,200 the second year, and, for the remaining years of the first 15 years of operation, net returns of $6,200 per year. After 15 years, the net returns will be $3,400 per year until the end of 25 years of operation. After 25 years, your lease will expire. The salvage value of equipment at that time is expected to be just sufficient to cover the cost of closing the business. Your answer must be correct to exactly 4 decimal places and must not include the percent sign, "\%", Use Excel's Internal Rate of Return Function, do not calculate this by hand. Internal Rate of Return = Step by Step Solution
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