Question
A one period investment requires an outlay of 100 today and will generate $120 a year later. The required rate of return for the investment
A one period investment requires an outlay of 100 today and will generate $120 a year later. The required rate of return for the investment is 10%.
- What is the return from this project?
- What is the NPV for the investment?
- What is the internal rate of return for the investment?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
