Homework Answers
Solution:-
Year 0 cash flow=-600000
Year 1 to 9 cash flow=2,20,000
Year 10 cash flow= 2,20,000 + 60,000=2,80,000
|
Year |
CF |
|
0 |
-600000 |
|
1 |
220000 |
|
2 |
220000 |
|
3 |
220000 |
|
4 |
220000 |
|
5 |
220000 |
|
6 |
220000 |
|
7 |
220000 |
|
8 |
220000 |
|
9 |
220000 |
|
10 |
280000 |
|
IRR |
35.02% |
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