Question
Adidas has been offered a contract by LA Galaxy Athletics to produce new gear for all student- athletes. The contract would last for four years
Adidas has been offered a contract by LA Galaxy Athletics to produce new gear for all student- athletes. The contract would last for four years and Adidas's cash flows from the contract would be $3.2 million per year. Adidas's upfront setup costs to be ready to produce all the new gear would be $8.0 million. Their discount rate would be 6.0%.
What is the IRR of the cash flow for this project?
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Banking With Integrity The Winners Of The Financial Crisis
Authors: Dr Heiko Spitzeck , Dr Michael Pirson, Dierksme , Dr. Heiko Spitzeck , Prof. Claus Dierksmeier, Dr. Michael Pirson
1st Edition
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