What was the company’s internal rate of return

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Reference no: EM13818351

Mini-Fit Solutions is a manufacturer of miniature valves and fittings. Over an 8 year period the costs associated with a certain product line were as follows:

Initial cost: $45,000

Annual Costs: $25,000

Annual Revenues: $35,000

(1) What was the company’s Internal Rate of Return (IRR) for the product over this study period?

(2) (EC – 3 points) If the reinvestment rate was 15% during the period, what External Rate of Return (ERR) did the company make?

Reference no: EM13818351

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