Question 1
Saint Mary's is offered a contract, which requires an immediate investment of $25 million. The estimated returns are $5 million per year for 20 years. Compute the rate of return.
◦ 19.42%
◦ 13.79%
◦ 7.75%
◦ 12.45%
◦ 99.9%
Question 2
Korea Nuclear tritium removal facility (TRF) project requires an immediate investment of $33 million with a residual value of $7 million at the end of the project. It is expected to yield a net return of $1 million in Year 1 from the sale of immobilized tritium to ITER, $5 million dollars in Year 2, $8 million per year for the following six years, and $7 million per year for the remaining four years. Find the rate of return using Excel's IRR function.