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Answer :
0 = (-$25,000) + ($7,000 / (1 + IRR)^1) + ($7,000 / (1 + IRR)^2) + ($8,000 / (1 + IRR)^3) + ($8,000 / (1 + IRR)^4) + ($5,000 / (1 + IRR)^5)
To calculate the Internal Rate of Return (IRR) for the given cash flows, we can use the following steps:
Identify the cash flow amounts and their respective time periods.
Year 0: -$25,000
Year 1: $7,000
Year 2: $7,000
Year 3: $8,000
Year 4: $8,000
Year 5: $5,000
Set up the equation by equating the present value of the cash flows to zero and solve for the IRR. The equation is:
Using numerical methods or financial software, we can find the IRR that satisfies the equation.
Learn more about IRR at: brainly.com/question/31393609
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