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Mahmut Tutam is considering making an investment of $120,000 in a venture that is projected to yield annual returns over a 15- year period with
Mahmut Tutam is considering making an investment of $120,000 in a venture that is projected to yield annual returns over a 15- year period with the following cash flow profile: Cash Flow Year Cash Flow Year Year 1 6 11 7 2. 3 $15.000 $16.000 $17,000 $18,000 $19,000 $20,000 $20.000(0.9) $20,000(0.9)2 $20,000(0.9) $20,000(0.9)4 12 13 Cash Flow $20,000(0.9) $20,000(0.9) $20.000(0.9) $20,000(0.9)8 $20.000(0.9) 8 4 9 14 10 15 Using an internal rate of return analysis, should he make the investment if his time value of money is 8%? IRR = % Round entry to 2 decimal places. The tolerance is +0.05. The investment be made. e Textbook ar should not should Using an internal rate of return analysis, should he make the investment if his time value of money is 11%? % IRR - The investment be made. e Textbook ar should not should Using an internal rate of return analysis, for what time value of money value will he be indifferent in making versus not making the investment? % Mahmut Tutam is considering making an investment of $120,000 in a venture that is projected to yield annual returns over a 15- year period with the following cash flow profile: Year Year Cash Flow Year 1 6 N Cash Flow $15,000 $16,000 $17,000 $18,000 $19.000 11 12 7 3 Cash Flow $20,000(0.975 $20,000(0.9)6 $20,000(0.9)? $20,000(0.98 $20,000(0.9) $20,000 $20,000(0.9) $20,000(0.9)2 $20,000(0.9) $20,000(0.94 8 13 14 4 9 5 10 15 Using an internal rate of return analysis, should he make the investment if his time value of money is 8%? IRR = de Round entry to 2 decimal places. The tolerance is +0.05. The investment v be made. e Textbook and Media Using an internal rate of return analysis, should he make the investment if his time value of money is 11%? IRR = %
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