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 its manufacturing facility plant
and other associated costs will be $4.6 million
(at the present time).
The project is expected to generate only one cash flow of
$8.5 million. Given the complexity of the project,
the cash inflow will not be received until 10
years from now.
Calculate the internal rate of return on the investment
Solution :
The IRR of the investment is = 6.33 %
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
Purple Rain Company is developing a new technology that has the potential of forever changing the way that vegetables ar...
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 its manufacturing facility plant and other associated costs will be $3.2 million (at the present time). The project is expected to generate only one cash flow of $8.3 million. Given the complexity of the project, the cash inflow will not be received until 10 years from now. Calculate the internal rate of return on...
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 its manufacturing facility plant and other associated costs wil be $4.1 million (at the present time) The project is expected to generate only one cash flow of $8.7 million. Given the complexity of the project, the cash inflow will not be received untl 11 years from now Calculate the internal rate of return on...
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