A can purchase a store today for 22000.In the first year A will make 14000 and can increase income
A will close the bar in year 3 for a renovation,which will cost $40000.A expect year 4 and year 5 profits to be $22000 and $25000 respectively.Assume MARR = 15%.Assume that if it continued to be operated,the high-class restaurant would make $25,000 for years 6 onward; if not renovated,the bar would have profits of $18,000 per year from year 2 onward.How many years would A need to operate the high-class restaurant before the IRR would be equal to that of the option not to renovate?