Post by: asan beg on Jun 7, 2019
Question 1
Use Excel's IRR function to answer the question.A project requires an initial outlay of $100 000 and promises net returns of $18 500 per year over a twelve-year period. If the project has a residual value of $4000 after twelve years, what is the rate of return?
Question 2
Use Excel's IRR function to answer the question.Billy Bob wants to convert his farm into a ski resort. He asked you to determine his rate of return based on the following estimates.
- Development cost for each of the first 2 years, $87 000.
- Construction of a chalet in Year 3, $1 240 000.
- Upon his retirement in fifteen years, improvements in the property will yield him $270 000.
- Net returns from the operation of the golf course will be nil for the first three years and $200 000 per year afterwards until his retirement.
Post by: verrinzo on Jun 7, 2019
Answer 1
Answer 2
Post by: asan beg on Jun 7, 2019
Post by: verrinzo on Jun 7, 2019