You are offered an asset costing $600 that has cash flows of $100 at the end of

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You are offered an asset costing $600 that has cash flows of $100 at the end of each of the next 10 years.

a. If the appropriate discount rate for the asset is 8 percent, should you purchase it?

b. What is the IRR of the asset?

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Financial Modeling

ISBN: 9780262026284

3rd Edition

Authors: Simon Benninga

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