Dunder Mifflin invests in a new warehouse for $250,000. The investment is expected to generate cash flows in the next 3 years of: $70,000, $90,000, and $110,000. Calculate the IRR of the project.
Let irr be x%
At irr,present value of inflows=present value of outflows.
250,000=70,000/1.0x+90,000/1.0x^2+110,000/1.0x^3
Hence x=irr=3.67%(Approx).
Dunder Mifflin invests in a new warehouse for $250,000. The investment is expected to generate cash...
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