What is the IRR

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Reference no: EM133097300

Question - You work for a software company that is considering developing a new product. You estimate that there is an 80% probability that it will take six months and cost $100,000, and a 20% probability that it will take nine months and $150,000 to produce. The marketing department is confident that 30 units can be sold each year, at $1,000 each, for five years. Assume that the product costs are booked at the beginning of the first year of sales. What is the IRR?

Reference no: EM133097300

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