Calculate the Initial Cost, Knowing IRR
A company purchased equipment for a project. The useful life of the project is 7 years. It has been estimated that each year-end the project is going to generate a net cash inflow of 50000. The resale value of the equipment is zero. The discount rate is 16% and the IRR of the project is 20%. What's the initial cost of the equipment? The solving process must not be assisted by Excel.