Question
In: Finance
A company is considering of a new product line that is believed to be marketable for...
A company is considering of a new product line that is believed to be marketable for the next 10 years. An initial investment of $215,000 will be required with an estimated salvage value of $40,000 at the end of 10 years. The annual receipts will start at $53,000, the first year and then increase by $2000 each year thereafter. Disbursements will start at $21,000 the first year and increase by $500 each year thereafter. What is the prospective rate of return of this proposal?
Solutions
Expert Solution
the prospective rate of return of this proposal=12.90% using excel function of IRR(values)
jeff jeffy answered 2 years agoRelated Solutions
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