A small company purchased now for 23000 will lose 1200 each, Ask an Expert

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A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000.

a. Determine the IRR
b. Calculate the FW if MARR = 12%
c. Calculate the ERR when externeal reinvestment rate per period is 12%

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9882226

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