Pari Corporation is planning a 20 year project with an initial investment of $10 million. The project will have $50,000 cash outflows per year in years 1-4; $300,000 cash inflows in years 5-15, and $15,000 cash inflows in years 16-20. Determine the projects rate of return. -9.81% -10.57% -5.51% 10.92%
Pari Corporation is planning a 20 year project with an initial investment of $10 million. The project will have $50,000 cash outflows per year in years 1-4; $300,000 cash inflows in years 5-15, and $15,000 cash inflows in years 16-20. Determine the projects rate of return. -9.81% -10.57% -5.51% 10.92%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Pari Corporation is planning a 20 year
project with an initial investment of $10
million. The project will have $50,000
cash outflows per year in years 1-4;
$300,000 cash inflows in years 5-15, and
$15,000 cash inflows in years 16-20.
Determine the projects rate of return.
-9.81%
-10.57%
-5.51%
10.92%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bb3d79e-d24a-4a45-9655-88f52996ecd2%2Fd33fcae2-2aab-4195-b777-c9ef1b1a7fdc%2Fgkql08g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pari Corporation is planning a 20 year
project with an initial investment of $10
million. The project will have $50,000
cash outflows per year in years 1-4;
$300,000 cash inflows in years 5-15, and
$15,000 cash inflows in years 16-20.
Determine the projects rate of return.
-9.81%
-10.57%
-5.51%
10.92%
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