Question
An investment project has the following cash flows: CF0 = -1,000,000; C01 C08 = 200,000 each. If the required rate of return is 12%, what
An investment project has the following cash flows: CF0 = -1,000,000; C01 C08 = 200,000 each. If the required rate of return is 12%, what decision should be made using NPV? How would the IRR decision rule be used for this project, and what decision would be reached? How are the above two decisions related?
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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
