You are evaluating the feasibility of a project that requires an investment of $350,000 today and another investment of $200,000 in Year 1. The project would generate profits of $150,000 every year starting in year 2 for 5 years. The project has a terminal value of $100,000. Year Year Year Year Year Year Today 1 2 3 4 5 6 + + $150,000 $150,000 $150,000 Assistance $350,000 $200,000 Financial calculator diagram CF 2ND CLR WORK Calculate the IRR for this project CFo=350,000 (+/-) C01 = 200,000 555 % F01 =1

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Calculate the IRR for the picture enclosed

You are evaluating the feasibility of a project that requires an investment of
$350,000 today and another investment of $200,000 in Year 1. The project would
generate profits of $150,000 every year starting in year 2 for 5 years. The project
has a terminal value of $100,000.
Year
Year
Year
Year
Year
Year
Today
1
3.
4
6
+
$150,000 $150,000 $150,000
Assistance
$350,000
$200,000
Financial calculator diagram
CF
2ND CLR WORK
Calculate the IRR for this project CFo = 350,000 (+/-)
CO1 = 200,000
F01 = 1
555 %
Transcribed Image Text:You are evaluating the feasibility of a project that requires an investment of $350,000 today and another investment of $200,000 in Year 1. The project would generate profits of $150,000 every year starting in year 2 for 5 years. The project has a terminal value of $100,000. Year Year Year Year Year Year Today 1 3. 4 6 + $150,000 $150,000 $150,000 Assistance $350,000 $200,000 Financial calculator diagram CF 2ND CLR WORK Calculate the IRR for this project CFo = 350,000 (+/-) CO1 = 200,000 F01 = 1 555 %
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