Answer:
Explanation:
Answer:
IRR = 0.24495
Explanation:
Given data:
Tariff =$0.25
So, present value = $0.25
N = 20 year
salvage value after 20 year is $20 M
final value is $20 M
IRR means internal rate of return and it is given as
![IRR =[(FV)/(PV)]^(1/n) -1](https://img.qammunity.org/2020/formulas/mathematics/college/ylcnia1315zmsuf5z1l5ai0x1ry7og1bw5.png)
Where FV is final value and PV is present value
![IRR = [(20)/(0.25)]^(1/20) -1](https://img.qammunity.org/2020/formulas/mathematics/college/mpfo5nwkgn90iiwfq4lk2t4bahpwkmnh9s.png)
IRR = 0.24495