A group of Turkish investors is considering purchasing a firm for TL140 million. The net income of
Question:
A group of Turkish investors is considering purchasing a firm for TL140 million. The net income of the firm in 2017 was TL5.6 million and financial analysts expect this level of profitability (adjusted for inflation) to continue indefinitely. Calculate the internal rate of return. If the real interest rate was \(5 \%\), would it be worthwhile for the investors to buy the firm?
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To calculate the internal rate of return IRR of the investment in the firm we need to set up the ...View the full answer
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