If an investment requires a $60,000 initial investment, is forecasted to produce variable cash flows each year over a 10-year holding period, and will be sold at the end of period 10 for $45,000, what is its projected IRR?
Question: In the solution set up, how did they know that in year 1, the $ is 10K then 9K etc. to 1K in year 10? Where in the problem above is that information given?
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It's not given anywhere.
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