TABLE P6-82 Data for Problems 6-82 through 6-85 A B D E Capital investment Annual expenses Annual revenues $90,000 40,000 52,000 15,000 $60,000 $40,000 25,000 38,000 10,000 30.8% $30,000 15,000 28,000 10,000 $70,000 30,000 35,000 50,000 45,000 Market value at EOY 10 10,000 15,000 IRR ??? 7.4% 42.5% 9.2%

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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The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. Use this information to solve, The IRR for Alternative A is most nearly: (a) 30% (b) 15% (c) 36% (d) 10% (e) 20%.

TABLE P6-82 Data for Problems 6-82 through 6-85
A
B
D
E
Capital investment
Annual expenses
Annual revenues
$90,000
40,000
52,000
15,000
$60,000
$40,000
25,000
38,000
10,000
30.8%
$30,000
15,000
28,000
10,000
$70,000
30,000
35,000
50,000
45,000
Market value at EOY 10
10,000
15,000
IRR
???
7.4%
42.5%
9.2%
Transcribed Image Text:TABLE P6-82 Data for Problems 6-82 through 6-85 A B D E Capital investment Annual expenses Annual revenues $90,000 40,000 52,000 15,000 $60,000 $40,000 25,000 38,000 10,000 30.8% $30,000 15,000 28,000 10,000 $70,000 30,000 35,000 50,000 45,000 Market value at EOY 10 10,000 15,000 IRR ??? 7.4% 42.5% 9.2%
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