The proposed expansion of CIV Electronics' plant facilities requires the immediate outlay of $100,000. 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 $24,000 $35,000 Year 6 The internal rate of return is %. (Round to the nearest tenth as needed.) $52,000 $49,000 $11,000

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The proposed expansion of CIV Electronics' plant facilities requires the immediate outlay of
$100,000. 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
$24,000
Year 5
$35,000 Year 6
The internal rate of return is %.
(Round to the nearest tenth as needed.)
$52,000
$49,000
$11,000
Transcribed Image Text:The proposed expansion of CIV Electronics' plant facilities requires the immediate outlay of $100,000. 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 $24,000 Year 5 $35,000 Year 6 The internal rate of return is %. (Round to the nearest tenth as needed.) $52,000 $49,000 $11,000
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