Question
Bubba has $30 million to invest and he is considering three independent projects, projects A, B, and C require initial investments of $30 million, $20
Bubba has $30 million to invest and he is considering three independent projects, projects A, B, and C require initial investments of $30 million, $20 million, and $10 million, respectively.All three projects have 7-year lives and Bubba's required rate of return is 12%.Projects A, B, and C generate annual revenue of $6.6 million, $4.5 million, and $2.5 million, respectively.
What is the IRR of the investment strategy you recommended to Bubba?
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
