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4 of 7 ID: FMTH.ID.IRR.01A A large stake in an Alpacca farming business can be purchased for $58,080. The Alpacca farm is expected to return
4 of 7 ID: FMTH.ID.IRR.01A A large stake in an Alpacca farming business can be purchased for $58,080. The Alpacca farm is expected to return $5,000 in perpetuity per half-year in arrears. The required rate of return on investments of this risk is j2 = 20%. a) What is the investment's net present value? Give your answer in dollars and cents to the nearest cent. NPV = $ b) What is the internal rate of return (IRR)? Give your answer as a nominal percentage per annum to 3 decimal places. IRR = % pa
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