Charlie has a project for which he had determined a present worth of $56, 159. He now has to calculate the IRR for the project, but unfortunately he has lost complete information about the cash flows. He knows only that the project has a five-year service life and a first cost of $180,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project?
Charlie has a project for which he had determined a present worth of $56, 159. He now has to calculate the IRR for the project, but unfortunately he has lost complete information about the cash flows. He knows only that the project has a five-year service life and a first cost of $180,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Charlie has a project for which he had determined a present
worth of $56, 159. He now has to calculate the IRR for
the project, but unfortunately he has lost complete information
about the cash flows. He knows only that the project has a
five-year service life and a first cost of $180,000, that a set of
equal cash flows occurred at the end of each year, and that the
MARR used was 10 percent. What is the IRR for this project?
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