The proposed expansion of CIV Electronics' plant facilities requires the immediate outlay of$95,000. Expected net returns are given in the following table. Calculate the internal rate of return (IRR).Year 1Year 2Year 3$Nil Year 4Year 5Year 6$25,000$36,000%.The internal rate of return is(Round to the nearest tenth as needed.)$52,000$50,000$11,000...

Internal rate of return which is average expected rate of return over the period of the project life…

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The internal rate of return is%. (Round to the nearest tenth as needed.)

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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Question

The proposed expansion of CIV Electronics' plant facilities requires the immediate outlay of
$95,000. Expected net returns are given in the following table. Calculate the internal rate of return (IRR).
Year 1
Year 2
Year 3
$Nil Year 4
Year 5
Year 6
$25,000
$36,000
%.
The internal rate of return is
(Round to the nearest tenth as needed.)
$52,000
$50,000
$11,000
...

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