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13 October, 13:55

Chasteen, Inc., is considering an investment with an initial cost of $145,000. The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years. What is the internal rate of return

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  1. 13 October, 15:46
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    21.29 percent

    Explanation:

    Chasteen, Inc.,

    NPV = 0

    = - $145,000 + $76,000 / (1 + IRR) + $76,000 / (1 + IRR) 2 + $30,000 / (1 + IRR) 3+$30,000 / (1 + IRR) 4

    IRR = 21.29 percent

    Therefore the Internal rate of return is 21.29 percent
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Home » Business » Chasteen, Inc., is considering an investment with an initial cost of $145,000. The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years. What is the internal rate of return
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