In: Finance
What is the internal rate of return (to the nearest one-half percent) on an investment costing $500,000 and having expected future after-tax net cash flows of:
|
Year |
Net Cash Flow ($) |
|
|
1 |
100,000 |
|
|
2 |
150,000 |
|
|
3 |
150,000 |
|
|
4 |
300,000 |
(includes salvage) |
Use the trial-and-error method and write out all your work. Hint: Start at 11%.