An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment’s internal rate of return?Below is a table for the present value of $1 at compound interest.Year 6% 10% 12% 15%1 0.943 0.909 0.893 0.8702 0.890 0.826 0.797 0.7563 0.840 0.751 0.712 0.6584 0.792 0.683 0.636 0.5725 0.747 0.621 0.567 0.497 Below is a table for the present value of an annuity of $1 at compound interest.Year 6% 10% 12% 15%1 0.943 0.909 0.893 0.8702 1.833 1.736 1.690 1.6263 2.673 2.487 2.402 2.2834 3.465 3.170 3.037 2.8555 4.212 3.791 3.605 3.353 fill in the blank 1 %

Internal rate of Return: IRR is a discounting cash flow technique gives rate of return earned by…

Answered: An investment of $185,575 is expected…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment’s internal rate of return?

Below is a table for the present value of $1 at compound interest.

Year	6%	10%	12%	15%
1	0.943	0.909	0.893	0.870
2	0.890	0.826	0.797	0.756
3	0.840	0.751	0.712	0.658
4	0.792	0.683	0.636	0.572
5	0.747	0.621	0.567	0.497

Below is a table for the present value of an annuity of $1 at compound interest.

Year	6%	10%	12%	15%
1	0.943	0.909	0.893	0.870
2	1.833	1.736	1.690	1.626
3	2.673	2.487	2.402	2.283
4	3.465	3.170	3.037	2.855
5	4.212	3.791	3.605	3.353

fill in the blank 1 %

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