6) Find the rate of return (IRR-compounded annually) on a project that will cost \$600,000 today, but will return a net income of \$100,000 at the end of every year for 10 years. (2 marks)
Added by Emilio R.
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The net cash flow for each year is the net income minus the initial cost. In this case, the net income is $100,000 and the initial cost is $600,000. So the net cash flow for each year is $100,000 - $600,000 = -$500,000. Show more…
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