An investment of $100,000 will yield annual profits of $16,000 for 10 years. The proceeds on disposition at the end of the 10 years are estimated at $25,000. On the basis of its IRR and a 12% cost of capital, should the investment be made?

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The Answer of An investment of $100,000 will yield annual profits of $16,000 for 10 years. The proceeds on disposition at the end of the 10 years are estimated at $25,000. On the basis of its IRR and a 12% cost of capital, should the investment be made?

An Investment of $100,000 Will Yield Annual Profits of $16,000