04: Find the internal rate of return for the investment, the cash flow shown below using the (I.I.R) method, if the return on investment rate is 10%, an immediate amount of (C= 9000 ) $ has been invested at beginning of project, and the salvage value is (C =3000) $ . Year 1 2 4 5 6 Revenue $ 3500 4000 5000 6000 7000 8000 Cost $ 2000 2500 3500 4000 4500 4500

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Q4: Find the internal rate of return for the investment, the cash flow shown below
using the (I.I.R) method, if the return on investment rate is 10%, an immediate amount
of (C= 9000 ) $ has been invested at beginning of project , and the salvage value is
(C =3000) $ .
Year
1
2
4
5
6.
Revenue $
3500
4000
5000
6000
7000
8000
Cost $
2000
2500
3500
4000
4500
4500
Transcribed Image Text:Q4: Find the internal rate of return for the investment, the cash flow shown below using the (I.I.R) method, if the return on investment rate is 10%, an immediate amount of (C= 9000 ) $ has been invested at beginning of project , and the salvage value is (C =3000) $ . Year 1 2 4 5 6. Revenue $ 3500 4000 5000 6000 7000 8000 Cost $ 2000 2500 3500 4000 4500 4500
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