Problemtlc inc is considering an investment with an initial, Ask an Expert

Accounting

Problem:

T.L.C., Inc. is considering an investment with an initial cost of $175,000 that would be depreciated straight line to a zero book value over the life of the project. The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years.

Required:

Question: What is the internal rate of return?

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170426

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