Question
A large stake in an Alpacca farming business can be purchased for $72,970. The Alpacca farm is expected to return $3,000 in perpetuity per quarter
A large stake in an Alpacca farming business can be purchased for $72,970. The Alpacca farm is expected to return $3,000 in perpetuity per quarter in arrears. The required rate of return on investments of this risk isj4= 17%.
a)What is the investment's net present value? Give your answer in dollars and cents to the nearest cent.
NPV =$
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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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
