Answered: Carrie Haute buys a fast-food…

Carrie Haute buys a fast-food restaurant for $500,000. She is very successfuland sells the business 6 years later for $1,375,000. What is Carrie’s internalrate of return?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 20P: Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows...

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Question

Carrie Haute buys a fast-food restaurant for $500,000. She is very successful
and sells the business 6 years later for $1,375,000. What is Carrie’s internal
rate of return?

Definition Definition Discount rate of a project wherein its net present value equals zero. Internal rate of return equates the present value of future cash flows with the initial investments. Internal rate of return helps to determine nominal cash flows.

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