Question
A bank is planning to set up a new branch in a new location. If the initial invest is $28500, cost of capital is 14%,
A bank is planning to set up a new branch in a new location. If the initial invest is $28500, cost of
capital is 14%, net cash inflow is $10,000 per year and expected lifetime is 4 years, what would
the IRR of the branch in that new location? Should the bank set up the branch in that location?
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Introduction To Mathematical Statistics And Its Applications
Authors: Richard J. Larsen, Morris L. Marx
5th Edition
321693949, 978-0321694027, 321694023, 978-0321693945
