What is the err of the project

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Reference no: EM131859946

The prospective exploration for oil in the outer continental shelf by a small, independent drilling company requires an initial investment of $700,000. The estimated annual revenue from the oil production is $260,000. The life time of of the project is 10 years. At the end of the last year, the company needs to pay $1,250,000 to dismantle the drilling rig. If the company's external investment rate is the same as its MARR at 15%, what is the ERR of the project? (Please keep two decimal places and exclude '%' in your answer. (e.g. if your answer is 18.45%, enter 18.45)

Reference no: EM131859946

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