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Firm invests $75,000 to save $9000/year in energy costs for 15 years. What is projects rate of return? A. 8.44% B. 10.08% C.
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Answer #1
Year Cash flow
0 -75000
1 9000
2 9000
3 9000
4 9000
5 9000
6 9000
7 9000
8 9000
9 9000
10 9000
11 9000
12 9000
13 9000
14 9000
15 9000
8.44%

Using Excel's IRR function

option(A)

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