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1. Franchising, Inc. is considering a major investment. The investment will have an initial cost of $650,000. The cash inflow

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Answer #1

Rajendra Pokharkar File Home Insert Page Layout Formulas 11 V Data A Ratio Analysis(AutoRccovered) - Excel Review View Help T

Answer
The correct option is B : 10.81%
Explanation
Year Cash Folw
0 -$                           650,000
1 $                           100,000
2 $                           100,000
3 $                           100,000
4 $                           100,000
5 $                           120,000
6 $                           120,000
7 $                           120,000
8 $                           120,000
9 $                           120,000
10 $                           120,000
Internal Rate of Return 10.81%
10.81%
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