Calculate effective annual internal rate-return for venture

Reference no: EM13333749

You buy a company for $400,000 and have net profits of $20,000 per month for the first 6 months, $30,000 for the next 6 months, and $15,000 for the next 12 months. (All of the profits are paid at the end of the month.) You sell the company for $100,000 at the end of year 2. What is internal rate of return per month for this venture? Calculate the effective annual internal rate of return for this venture.

Reference no: EM13333749

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