3. Lockheed Martin has secured a satellite launch contract from a European communications To land that contract, they company that will pay them €3.9M per year for the next 8 years. invested €13M in a satellite tracking system. Of that amount, €8M was paid up front and the remaining €5M was spent during the first year of operation. The annual operating costs for the satellite tracking system are estimated at €0.9M per year (which includes the cost of personnel, electricity, maintenance, etc.). At the end of the contract, it is estimated that the equipment will have a salvage value of €0.5M. What is Lockheed Martin's internal rate of return (IRR) on this project?

3. Lockheed Martin has secured a satellite launch contract from a European communications To land that contract, they company that will pay them €3.9M per year for the next 8 years. invested €13M in a satellite tracking system. Of that amount, €8M was paid up front and the remaining €5M was spent during the first year of operation. The annual operating costs for the satellite tracking system are estimated at €0.9M per year (which includes the cost of personnel, electricity, maintenance, etc.). At the end of the contract, it is estimated that the equipment will have a salvage value of €0.5M. What is Lockheed Martin's internal rate of return (IRR) on this project?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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（D）Detailed calculation steps