If the water supply company charges you now $25 every month for service and $10 for water fees. The plan is to keep the house for 10 years. The house water system will cost you $4,500. - If this system will supply all the water the house uses, and you will not be in need to the water supply company anymore. 1. What is the IRR % (......... 2. Yes or no, based on IRR is this a good investment (............)
If the water supply company charges you now $25 every month for service and $10 for water fees. The plan is to keep the house for 10 years. The house water system will cost you $4,500. - If this system will supply all the water the house uses, and you will not be in need to the water supply company anymore. 1. What is the IRR % (......... 2. Yes or no, based on IRR is this a good investment (............)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Please write the final answer as a percentage with one decimal.
Transcribed Image Text:****Only answer this question if you are sure about the correct answer****
***Internal rate of Return Question***
If you want to install water system in your house to collect the rain water:
a. If the water supply company charges you now $25 every month for service and
$10 for water fees.
b. The plan is to keep the house for 10 years.
c. The house water system will cost you $4,500.
d. If this system will supply all the water the house uses, and you will not be in need
to the water supply company anymore.
1. What is the IRR % (...... .)
2. Yes or no, based on IRR is this a good investment (.….............)
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