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? Is it worthwhile to set up the branch in that new location?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
