A group of Turkish investors is considering purchasing a firm for TL140 million. The net income of

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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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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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