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Katarina [22]
3 years ago
6

A TES (Thermal Energy Storage) system is installed that will cost $89,000 and is projected to save $35,684 annually for the life

of the project of 18 years. What is the exact Internal Rate of Return (IRR)
Business
1 answer:
Blababa [14]3 years ago
6 0

Answer:

the exact internal rate of return is 40%

Explanation:

The computation of the exact internal rate of return is shown below

Given that

Initial investment = -$89,000

Year 1 to Year 18 = $35,684 each year

Based on the above information

We use the IRR formula

= IRR()

After applying the internal rate of return formula, the exact internal rate of return is 40%

So the same is considered and relevant too

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Explanation:

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I'm not a mathematician but I'm going to go out on a limb here and say 44%!
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