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. Hamilton State Bank wants to add a new branch office. They have determined that the...

. Hamilton State Bank wants to add a new branch office. They have determined that the cost of construction on the new facility will be $1.5 million with another $500,000 in organizational costs. Annual net revenues are projected to be $277,000. If the new branch is expected to last 20 years, what is the expected rate or return on this investment? (Round to the nearest whole percent)

            A. $929,252

            B. 72%

            C. 15%

            D. 12.5%

            E. 1.14%

Please show me the work so I know how to do it.

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Answer #1

B23 - fx =IRR(B2:B22) B 1 year Cash flows 2 0 $ (2,000,000.00) 1500000+500000 3 1 $ 277,000.00 4 2 $ 277,000.00 5 3 5 277,000

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