A $100,000 capital investment will produce annual profits of $20,000 for the first five years and $15,000 for the next five years. It will have no residual value. What is its IRR? Should it be undertaken if the cost of capital is 12%?

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The Answer of A $100,000 capital investment will produce annual profits of $20,000 for the first five years and $15,000 for the next five years. It will have no residual value. What is its IRR? Should it be undertaken if the cost of capital is 12%?

A $100,000 Capital Investment Will Produce Annual Profits of $20,000