What is the internal rate of return of this proposal

Reference no: EM133633257

Question: A company is considering a new line which will require an initial investment of $355,000. Free cash flows expected as a result of this project are shown below. At the end of the final year shown, the company plans to sell off assets no longer needed by the project, netting $20,000 after tax. The company has a 15% cost of capital (i.e., the required rate of return is 15%). What is the internal rate of return of this proposal?

Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Initial Investment	80,000	85,000	90,000	95,000	100,000

Enter your answer as a percentage rounded to two decimal places, but without the percent symbol. For example, if your answer is 90.1234%, enter 90.12 If you have a negative result, enter a negative number.

Reference no: EM133633257

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