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Internal rate of return method for a service company Vail Resorts, Inc. ( MTN ) , announced a $ 2 9 1 , 5 5
Internal rate of return method for a service company
Vail Resorts, Inc. MTN announced a $ million expansion of lodging properties, ski lifts, and terrain in Park City, Utah. Assume that this investment is estimated to produce $
million in equal annual cash flows for each of the first years of the project life.
Present Value of an Annuity of $ at Compound Interest
a Determine the expected internal rate of return of this project for years, using the present value of an annuity of $ table above.
b Identify the uncertainties that could reduce the internal rate of return of this project?
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