Answer:
18.37%
Explanation:
The internal rate of return is the return at which the net present value comes to zero
Here the net present value is the value at which the present cash inflows after discounting factor is exceeded then the initial investment. If this thing happens then the project would be accepted otherwise it would be rejected
The computation of the range of the plant IRR is to be shown in the attachment below.
Please find the attachmentHence, the internal rate of return is 18.37%
The question is incomplete. The complete question is :
The Jackson family is undecided about whether or not to buy a new car. If the probability is .9 that they will buy one, and if the probability is .3 that they will buy a Ford, and if the probability is .4 that they will purchase a car getting more than 20 miles per gallon, what is the probability that they will buy either a car getting more than 20 miles per gallon or a Ford, if all Fords get more than 20 miles per gallon?
Solution :
Given that :
The probability of buying a new car,
Probability of buying Ford = 0.3
That is, if Jackson family buy a car that is a ford car,
= 0.27
The probability for getting more than 20 miles per gallon = 0.4
That is if Jackson family buy a car that have more than 20 miles per gallon mileage,
The conditions
All of the car have more than 20 miles per gallon mileage.
It means that buying a ford car is subset of getting more than 20 miles per gallon.
Therefore, the probability of buying a car either getting more than 20 miles per gallon or ford =
Therefore,
= 0.36
Thus the probability that Jackson family is buying a car either getting more than 20 miles per gallon or ford is 0.36