The 1095 Corporation is considering purchasing equipment which will require an initial cash investment of $285,000....

The 1095 Corporation is considering purchasing equipment which will require an initial cash investment of $285,000. It expects to increase its cash flow from the equipment as follows: Year 1 - $125,000; Year 2 - $155,000; Year 3 - $115,000. (All yearly cash flows are positive #s). If the company’s required return is 13%, what is the approximate IRR for this investment?

Less than 0
Between 0 and 5%
Between 5% and 10%
Between 10% and 15%
Greater than 15%

Expert Solution

jeff jeffy answered 6 months ago

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