Use Excel's IRR function to answer the question.The owner of a ...

[darbym82]

Question 1

Use Excel's IRR function to answer the question.


The introduction of a new product requires an initial outlay of $610 000. The anticipated net returns from the marketing of the product are expected to be $92 300 per year for 12 years. Find the rate of return (correct to the nearest tenth of a percent).

Question 2

Use Excel's IRR function to answer the question.


The owner of a music store is considering remodelling the store in order to carry a larger inventory. The cost of remodelling and additional inventory is $43 200. The expected increase in net profit is $7000 per year for the next 3 years and $10 000 each year for the following 7 years. After ten years, the owner plans to retire and sell the business. She expects to recover the additional $40 000 invested in inventory but not the $43 200 invested in remodeling. Compute the rate of return.

[duke02]

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[darbym82]

YES! Correct, THANKS for helping me on my review

[blakcmamba]

Thanks for the timely response, appreciate it