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 for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
