Calculate the equivalent value of the resulting income


Question: A project has a cost of $400,000 per year in years 1 through 10. The resulting income is estimated at $270,000 per year, starting in year 11, and is expected to continue in perpetuity (forever). Write down the equation, which can be used to calculate the equivalent value of the resulting income as a single payment at Year 10. Determine the rate of return on the project using the GOAL SEEK tool in Excel. Do not upload the Excel sheet, Instead; clearly write the Excel functions used and the resulting rate of return after you run your GOAL SEEK.

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Accounting Basics: Calculate the equivalent value of the resulting income
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