Vhich equation below can be used to solve for the IRR of this project?

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
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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
1
$30,000
IRR
$200,000 = 0
IRR(1+ IRR)13 J (1+ IRR)3
1
1
$30,000
IRR
$200,000 = 0
IRR(1 + IRR)13
1
1
$30,000
IRR
$200,000 = 0
IRR(1+ IRR)10
1
$30,000
IRR
IRR(1+ IRR)10 J (1 + IRR)³,
$200,000 = 0
1
1
$30,000
IRR
- $200,000 = 0
IRR(1+ IRR)10
(1+ IRR)2
Transcribed Image Text: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 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)13 J (1+ IRR)3 1 1 $30,000 IRR $200,000 = 0 IRR(1 + IRR)13 1 1 $30,000 IRR $200,000 = 0 IRR(1+ IRR)10 1 $30,000 IRR IRR(1+ IRR)10 J (1 + IRR)³, $200,000 = 0 1 1 $30,000 IRR - $200,000 = 0 IRR(1+ IRR)10 (1+ IRR)2
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