question archive Your firm is considering introducing a new product for which returns are expected to be as follows: Year 1 to Year 3 (Inclusive): $2,000 per year Year 4 to Year 8 (Inclusive): $5,000 per year Year 9 to Year12 (Inclusive): $3,000 per year The introduction of the product requires an immediate outlay (expenditure) of $15,000 for equipment estimated to have a salvage value of $2,000 after 12 years
Subject:MathPrice: Bought3
Your firm is considering introducing a new product for which returns are expected to be as follows:
Year 1 to Year 3 (Inclusive): $2,000 per year
Year 4 to Year 8 (Inclusive): $5,000 per year
Year 9 to Year12 (Inclusive): $3,000 per year
The introduction of the product requires an immediate outlay (expenditure) of $15,000 for equipment estimated to have a salvage value of $2,000 after 12 years. Compute the Internal Rate of Return (IRR) for the launch of this product.