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A company is contemplating projects to invest their money in and have asked you to assess which is best. The first requires an initial investment
- A company is contemplating projects to invest their money in and have asked you to assess which is best. The first requires an initial investment of 300 million and will pay 432 million at the end of the 2nd year. You can exit the deal at the end of the second year. Projects with comparable risk are 10%.
- What is the payback period? What is the IRR? NPV?
- Another partner suggests an alternate structure that requires the same initial investment but ends after it pays 375 at the end of the first year. What is the payback? IRR? NPV?
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The Leverage Space Trading Model
Authors: Ralph Vince
1st Edition
0470455950, 978-0470455951
