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Alma Co. has been offered a business opportunity. If they invest $43,000 today (at year 0), theyll receive in return annual payments of $18,000 at
Alma Co. has been offered a business opportunity. If they invest $43,000 today (at year 0), theyll receive in return annual payments of $18,000 at the end of each of the next 2 years, starting at year 1. The discount rate for this opportunity is 14%. Approximately, what is the internal rate of return (IRR) of this business opportunity? and should Alma Co. accept or reject it based on IRR rule?
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IRR = 0.014% ; Accept
IRR = 0.011%; Accept
IRR = 0.011%; Reject
IRR = 0.014% ; Reject
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