Solution-Calculate the internal rate of return

Calculate the internal rate of return

Reference no: EM133112469

The Blue Sky Ski Resort plans to install a new chair lift. Construction is estimated to require an immediate outlay of $230,000. The life of the lift is estimated to be fifteen years with a salvage value of $85,000. Cost of clearing and grooming the new area is expected to be $20,000 for each of the first three years of operation. Net cash inflows from the lift are expected to be $41,000 for each of the first five years and $100,000 for each of the following ten years. Calculate the internal rate of return (IRR).

Reference no: EM133112469

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Calculate the internal rate of return

Reference no: EM133112469

Reference no: EM133112469

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