Question

What ROR will an entrepreneur make over a 8 year project period if he invested $75,000 (time 0) to produce portable X-volt air compressors? His estimated costs are $20,000 per year with estimated revenue of $40,000 per year.

(Hint: You can solve with IRR function in Excel)

Question 16 options:

	ROR=-100.0%
	ROR= 20.8%
	ROR= 113.0%
	ROR= 14.9%

Answer 1