Question
Assume you invest $ 3,100 today in an investment that promises to return $ 6,711 in exactly 10 years. a. Use the present-value technique to
Assume you invest $ 3,100 today in an investment that promises to return $ 6,711 in exactly 10 years.
a. Use the present-value technique to estimate the IRR on this investment.
b. If a minimum annual return of 13 % is required, would you recommend this investment?
a. The IRR of the investment is ______%.(Round to the nearest whole percent.)
b. If a minimum return of 13 % is required, would you recommend this investment?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
