Question

Question Status: 10 403 PM Purple Rain Company is developing a new technology that has the potential of forever changing the way that vegetables are grown. The initial costs associated with ts manufacturing facility plant and other associaled costs will be $3.1 milion (at the present time) The project is expected to generate only one cash flow of $8.1 million. Given the complexity of the project, the cash infow will not be received unl 10 years from now Caloulate the intemal rate of retum on the investment Place your answer in PERCENTAGE form using at least two decimal places of accuracy and without the percentage sign For example, f your intended answer is two point seven two, then place your answer as 2.72 AND NOT AS .0272.

Answer 1

rate positively ..

	We have to use financial calculator to solve this
	put in calculator
	FV		8.1
	PV		-3.1
	PMT		0
	N		10
	compute I		10.08%
	therefore answer =		10.08