A local entrepreneur asks you to invest $3,000 in a business venture. Based on your estimates, you would receive nothing for 3 years, at the end of year 4 you would receive $1,081, and at the end of year 5 you would receive $4,374. If your estimates are correct, what would be the IRR on this investment? The yield on this investment is %. (Round to the nearest whole percent.)

A local entrepreneur asks you to invest $3,000 in a business venture. Based on your estimates, you would receive nothing for 3 years, at the end of year 4 you would receive $1,081, and at the end of year 5 you would receive $4,374. If your estimates are correct, what would be the IRR on this investment? The yield on this investment is %. (Round to the nearest whole percent.)

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter2: Using Financial Statements And Budgets

Section: Chapter Questions

Problem 5FPE

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