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Author Question: Korea Nuclear tritium removal facility (TRF) project requires an immediate investment of $33 million ... (Read 887 times)

eruditmonkey@yahoo.com

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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.


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Marked as best answer by eruditmonkey@yahoo.com on Jun 7, 2019

meganlapinski

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