2. Your friend asks you to invest $10,000 in a business venture. Based on your estimates,...

Question

Question

business finance

Answer 1

Answer #1

To find the IRR, we need to put the following values in the financial calculator:

CF0 = -10,000; C01 = 0; F01 = 4; C02 = 8%*10,000 = 800; F02 = 1; C03 = 14,500; F03 = 1;

Press IRR, then CPT, which gives us 7.41

So, IRR = 7.41%

Answer 2

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