Determine the internal rate of return for an equipment that costs $150,000 and would provide positive cash flows of $60,000, $50,000, $40,000, and $30,000 at the end of each year for the next four years, and choose the option below that is closest to the actual internal rate of return.
|
Year
|
Cash Flow
|
|
0
|
-$150,000
|
|
1
|
$60,000
|
|
2
|
$50,000
|
|
3
|
$40,000
|
|
4
|
$30,000
|