Math $1095$: $2^{nd}\_"6\%$ Group Assignment" on

Chapter $16)$:

Distributed on Thursday Dec $7$th and DUE by

Wednesday Dec $13$ by $6$PM

TO:

apeterso@georgebrown.ca $....$ can be

done in groups.

$($Answer$\text{'}$s will be posted on Blackboard at $6$

PM on Wed Dec ${13}^{th})$

Names:

Compute the rate of return $($IRR$)$ if an original

investment of $$50,000$ today returned payments

of $$10,000$ at the end of the year for $6$ years.

$(16\mathrm{.}3$ IRR CPT$)$

Find the rate or return on an investment if it

generated year end payments of $$5,000$ for $15$

years but required cash outlays of $$20,000$

today and $$15,000$ in $5$ years from today. $(16\mathrm{.}3$

IRR CPT$)$

Your company is considering introducing a new

product which net returns are expected to be:

$$10,000$ at the end of years $1,2$ and $3$

$$20,000$ at the end of years $4,5,6$ and $7$

$$30,000$ at the end of years $8$ and $9$

The new product will require an immediate

cash outlay of $$100,000$ for machinery and an

additional outlay of $$17,000$ at the end of year

Find the rate of return $($IRR$),$ compounded

annually, on the project. $(16\mathrm{.}3$ IRR CPT$)$