# Internal rate of return for the investment

Davis Corporation is considering an investment that requires an initial outlay of $400,000 and will provide cash benefits of $100,000 at the end of each year over its 5-year life. In addition, the asset will have a salvage value of $200,000 at the end of its 5-year life. Compute the internal rate of return for the investment

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#### Solution Summary

The solution explains how to calculate the internal rate of return for the investment.

$2.19