Question
Your boss has just presented you with the summary in the accompanying table of projected costs and annual receipts for a new product line. He
Your boss has just presented you with the summary in the accompanying table of projected costs and annual receipts for a new product line. He asks you to calculate the IRR for this investment opportunity. What would you present to your boss, and how would you explain the results of your analysis? ( It is widely known that the boss likes to see graphs of PW versus interest rate for this type of problem.) The companys MARR is 10% per year. Find the Following:
a.CFT
b. IRR
c. i% vs PW(i%) table
d. Graph of i% vs PW(i%) and Graphically Display IRR
e. Explain your results
| End of Year | Investment Beginning of Year |
| 0 | -$2,500,000.00 |
| 1 | $750,000.00 |
| 2 | $250,000.00 |
| 3 | -$1,625,000.00 |
| 4 | $500,000.00 |
| 5 | $625,000.00 |
| 6 | $750,000.00 |
| 7 | $875,000.00 |
| 8 | $1,000,000.00 |
| 9 | $1,125,000.00 |
| 10 | $1,250,000.00 |
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Understanding Decentralized Finance How DeFi Is Changing The Future Of Money
Authors: Rhian Lewis
1st Edition
1398609390, 978-1398609396
