What is the irr of the capital investment described

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1. Audrey plans to invest $4,500 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now?

2. Assuming a 10% interest rate, how much would Jessica have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years?

3. (A) Chrostopher is considering a capital investment that costs $495,000 and will provide the following net cash inflows.

year 1 = $302,000 in net cash inflow

year 2 = $208,000 in net cash inflow

year 3 = $ 98,000 in net cash inflow

So, Using a hurdle rate of 8%, find the NPV of the investment.

 

(B) What is the IRR of the capital investment described in the Question?

Reference no: EM13777958

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