A small company purchased now for $150.000 will lose $ 1000 each year for the first three years.
An additional $5,000 in the company in the third year will result in a profit of $25,000 each year from the fourth through the tenth year.
At the end of 10 years, the company can be sold for $100,000. MARR= 8%
a) Determine the IRR for this project.
b) Calculate the KRR when epsilon = 6%.