Solution-Calculate the internal rate of return

Calculate the internal rate of return

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Question - Mandilly Industries is undertaking a series of significant cost saving changes to its operations effective immediately. It will cost the company $2,400,000 to implement the changes today. Over the next eight years, this will result in savings of $200,000 in each of the first two years, $500,000 in each of the three years following that, and $800,000 in each of the final three years.

Required -

(i) Develop the timeline (linear representation of the timing of cash flows).

(ii) Calculate the Payback Period (PB).

(iii) Calculate the Internal Rate of Return (IRR).

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Calculate the internal rate of return

Reference no: EM133049882

Reference no: EM133049882

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