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A person purchases a company for $50,000 now. This company will lose $2,200 each year the...

A person purchases a company for $50,000 now. This company will lose $2,200 each year the first four years. At the end of the fourth year, he/she will invest additional $16,000 in the company which will result in a profit of $11,000 each year from the fifth year through the fourteenth year. At the end of 15 years, the company can be sold for $66,000. Compounding is annual. (a) Determine the IRR. (b) Calculate the future worth if MARR = 12%. (c) Calculate the ERR when = 10%.

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jeff jeffy answered 5 months ago
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