Question
A large stake in an Alpacca farming business can be purchased for $488,520. The Alpacca farm is expected to return $7,000 in perpetuity per month
A large stake in an Alpacca farming business can be purchased for $488,520. The Alpacca farm is expected to return $7,000 in perpetuity per month in arrears. The required rate of return on investments of this risk is j12 = 20%.
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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Bitcoin Complete Guide To Bitcoin Understand Everything From Getting Started With Bitcoin Sending And Receiving Bitcoin To Mining Bitcoin
Authors: Mr Mark Gates
1st Edition
1974565491, 978-1974565498
