Question $20$

Consider the image above, with an initial cost today, an additional cost over the first year, followed by $4$ years of positive cash flows.

Before investing in the project, you learn that there is a change in the initial cost at time $0.$ If$,$ after these changes, the NPV of the

project were equal to $$6,100$ when the cost of capital is $15\%,$ then what would the equivalent annual return over the project's

productive life be$?$

Enter your answer in terms of $$,$ rounded to the nearest dollar.

Answer:

$2,400(2,457)$