An investment project has an initial outlay of 100 000 and


Question: An investment project has an initial outlay of $100 000, and at the end of each of the next 20 years has a return of $10 000. Show that there is a unique positive internal rate of return, and find its approximate value. (Hint: Use s = (1 + r)-1 as a new variable. Prove that the equation you obtain for s has a unique positive solution. Verify that s = 0.928 is an approximate root.)

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Mathematics: An investment project has an initial outlay of 100 000 and
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