An investment of $300,000 will yield annual profits of $55,000 for eight years. The proceeds on disposition of the investment at the end of the eight years are estimated at $125,000. On the basis of its IRR and a 15% cost of capital, should the investment be made?

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The Answer of An investment of $300,000 will yield annual profits of $55,000 for eight years. The proceeds on disposition of the investment at the end of the eight years are estimated at $125,000. On the basis of its IRR and a 15% cost of capital, should the investment be made?

An Investment of $300,000 Will Yield Annual Profits of $55,000