An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment’s internal rate of return? Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 0.890 0.826 0.797 0.756 3 0.840 0.751 0.712 0.658 4 0.792 0.683 0.636 0.572 5 0.747 0.621 0.567 0.497 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 1.626 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 5 4.212 3.791 3.605 3.353 fill in the blank 1 %
An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment’s internal rate of return? Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 0.890 0.826 0.797 0.756 3 0.840 0.751 0.712 0.658 4 0.792 0.683 0.636 0.572 5 0.747 0.621 0.567 0.497 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 1.626 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 5 4.212 3.791 3.605 3.353 fill in the blank 1 %
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
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An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next four years. What is the investment’s
Below is a table for the present value of $1 at compound interest.
Year | 6% | 10% | 12% | 15% | ||||
1 | 0.943 | 0.909 | 0.893 | 0.870 | ||||
2 | 0.890 | 0.826 | 0.797 | 0.756 | ||||
3 | 0.840 | 0.751 | 0.712 | 0.658 | ||||
4 | 0.792 | 0.683 | 0.636 | 0.572 | ||||
5 | 0.747 | 0.621 | 0.567 | 0.497 |
Below is a table for the present value of an annuity of $1 at compound interest.
Year | 6% | 10% | 12% | 15% | ||||
1 | 0.943 | 0.909 | 0.893 | 0.870 | ||||
2 | 1.833 | 1.736 | 1.690 | 1.626 | ||||
3 | 2.673 | 2.487 | 2.402 | 2.283 | ||||
4 | 3.465 | 3.170 | 3.037 | 2.855 | ||||
5 | 4.212 | 3.791 | 3.605 | 3.353 |
fill in the blank 1 %
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