What is pedros internal rate of return for this business

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Pedro creates a computer game that becomes very popular. He sets up a business to sell the game. It costs $100,000 to set up the business. The first year, he brings in $2,000,000 (2 million) in revenue. His costs are only $150,000 for each year of operation. In year 2, the revenue is only $1, 800,000. Similarly, year 3 revenue is $200,000 less than year 2, and every year it decreases another $200,000. The year when the revenue is zero, Pedro shuts down the business and has no cost. What is Pedro's internal rate of return for this business?

Reference no: EM131260386

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