Use the interest tables contained at the end of the textbook and/or a financial calculator to do the following exercises.
An entrepreneur would like to invest $200,000 in a project that would generate, for each year during the next ten years:
(a) $140,000 in gross profit,
(b) $90,000 in profit before taxes, and
(c) $40,000 in net profit for the year.
The accountant informed the entrepreneur that the statement of income includes an amount of $10,000. The investment in working capital during the first year of operation would be $60,000. During the last year, he would want to sell the business for $500,000.
-The project's internal rate of return is _________________________.

Question

Use the interest tables contained at the end of the textbook and/or a financial calculator to do the following exercises. 
An entrepreneur would like to invest $200,000 in a project that would generate, for each year during the next ten years: 
(a) $140,000 in gross profit, 
(b) $90,000 in profit before taxes, and 
(c) $40,000 in net profit for the year. 
The accountant informed the entrepreneur that the statement of income includes an amount of $10,000. The investment in working capital during the first year of operation would be $60,000. During the last year, he would want to sell the business for $500,000.
-The project's internal rate of return is _________________________.

Quizplus · Accepted Answer

The Answer of  Use the interest tables contained at the end of the textbook and/or a financial calculator to do the following exercises. 
An entrepreneur would like to invest $200,000 in a project that would generate, for each year during the next ten years: 
(a) $140,000 in gross profit, 
(b) $90,000 in profit before taxes, and 
(c) $40,000 in net profit for the year. 
The accountant informed the entrepreneur that the statement of income includes an amount of $10,000. The investment in working capital during the first year of operation would be $60,000. During the last year, he would want to sell the business for $500,000.
-The project's internal rate of return is _________________________.

Use the Interest Tables Contained at the End of the Textbook