Under what circumstances is irr rate of return

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Reference no: EM132069010

1. An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $101,562, and it has an estimated MV of $10,542 at the end of an estimated useful life of 10 years. Compute the BV at the end of year 5 by using SL method. (round to the nearest dollars)

2. Under what circumstances is an IRR a rate of return? Under what circumstances is a rate of return an IRR?

3. Please list the line items that would make up the operating and capital expenses of an existing 100,000 square foot ongoing and operating suburban office building.

Reference no: EM132069010

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