Following 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 Following 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 لیا
Following 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 Following 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 لیا
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 4P
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![An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years.
Following is a table for the present value of $1 at compound interest:
Year
1
2
3
4
12%
0.943
0.909
0.893
0.870
0.890
0.826 0.797 0.756
0.840
0.751 0.712 0.658
0.792
0.683
0.636
0.572
0.747 0.621 0.567
0.497
Following 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
4.212
3.791
3.605 3.353
5
5
6%
10%
%
15%
What is the investment's internal rate of return?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04df42a1-e69a-46ce-ae36-e6b9843e230e%2Fdc5ff1ef-b863-49c2-9d41-8a08942cc283%2Fiivf57_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years.
Following is a table for the present value of $1 at compound interest:
Year
1
2
3
4
12%
0.943
0.909
0.893
0.870
0.890
0.826 0.797 0.756
0.840
0.751 0.712 0.658
0.792
0.683
0.636
0.572
0.747 0.621 0.567
0.497
Following 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
4.212
3.791
3.605 3.353
5
5
6%
10%
%
15%
What is the investment's internal rate of return?
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