What was the irr if the initial investment

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The Cornballer, invented by George Bluth in the mid-1970s, is a device used to make cornballs. It sold for $29.95. Suppose that 10,000 Cornballers were sold in 1981; 11,000 in 1982; and sales increasing by 10% each year until it was last sold in 1990 (when it was made illegal). Assume an interest rate of 18% per year compounded annually. Assume sales were made at EOY. a. What is the worth (in dollars) of these revenues in year 1980? b. What was the IRR if the initial investment in 1980 was $1MM? Give your answer to at least 4 significant figures.

Reference no: EM13726368

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