How do I calculate the IRR of perpetuity given only an initial amount and a yearly profit? 2500000 initial outlay with an yearly income of $90,000? one example on youtube showed 50,000 and 6,000(yearly), but it didn't work out.   0= 6000/k-50000   6000=-50000k 50000 6000/K

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
icon
Related questions
Question
100%

How do I calculate the IRR of perpetuity given only an initial amount and a yearly profit? 2500000 initial outlay with an yearly income of $90,000? one example on youtube showed 50,000 and 6,000(yearly), but it didn't work out.

 

0= 6000/k-50000
  6000=-50000k
50000 6000/K 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College