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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: Year Cash Flow Year Cash Flow Year 1 6 11 2 7 12 $15,000 $16.000 $17.000 $18.000 $19.000 3 Cash Flow $20.000(0.9) $20.000(0.976 $20,000(0.9) $20,000(0.9)8 $20,000(0.9) $20.000 $20.000(0.9) $20.000(0.9)2 $20.000(0.9) $20.000(0.9)4 8 13 4 9 14 5 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 - % Using an internal rate of return analysis, should he make the investment if his time value of money is 11%? 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, for what time value of money value will he be indifferent in making versus not making the investment? % Round entry to 2 decimal places. The tolerance is $0.05
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