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QUESTION 12 Suppose you make an investment of $200,000 for a project that is forecasted to generate $30,000 per year for the next 10 years starting three years from today. Which equation below can be used to solve for the IRR of this project? 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)10 1 1 $30,000- IRR $200,000 = 0 IRR(1+ IRR)0 (1+ IRR)2 1 $30,000 1 1 $200,000 = 0 IRR IRR(1+ IRR)3 )( (1+ IRR)3, 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)10 (1+ IRR)3

QUESTION 12 Suppose you make an investment of $200,000 for a project that is forecasted to generate $30,000 per year for the next 10 years starting three years from today. Which equation below can be used to solve for the IRR of this project? 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)10 1 1 $30,000- IRR $200,000 = 0 IRR(1+ IRR)0 (1+ IRR)2 1 $30,000 1 1 $200,000 = 0 IRR IRR(1+ IRR)3 )( (1+ IRR)3, 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)10 (1+ IRR)3

Essentials Of Investments
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
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QUESTION 12 Suppose you make an investment of $200,000 for a project that is forecasted to generate $30,000 per year for the next 10 years starting three years from today. Which equation below can be used to solve for the IRR of this project? 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)10 1 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)!0 )(1+ IRR)2 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)13 ( (1+ IRR)3, 1 1 1 $30,000 IRR - $200,000 = 0 IRR(1+ IRR)0 X (1+ IRR)3 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)13
Transcribed Image Text:QUESTION 12 Suppose you make an investment of $200,000 for a project that is forecasted to generate $30,000 per year for the next 10 years starting three years from today. Which equation below can be used to solve for the IRR of this project? 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)10 1 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)!0 )(1+ IRR)2 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)13 ( (1+ IRR)3, 1 1 1 $30,000 IRR - $200,000 = 0 IRR(1+ IRR)0 X (1+ IRR)3 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)13
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