Annual revenue is unchanged-what is the irr for the project

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Consider the financial data for the following project. The annual revenue and annual expenses occur at the end of years 1 through 6 and the salvage value is recouped at the end of the 6 years.

Initial investment: $105,000

Annual revenue: $30,000

Annual expenses in year 1: $8,900

Salvage value: $11,000

Project life (years): 6

If the annual expenses increase at an annual rate of 7.6% compared to the previous year's expenses, but the annual revenue is unchanged, what is the IRR for the project? Express your answer as percentage between 0 and 100.

Reference no: EM131887319

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