Question
Consider an investment project that costs $1,000,000. It has a cash inflow of $200,000 for 8 years. 1. If the required rate of return is
Consider an investment project that costs $1,000,000. It has a cash inflow of $200,000 for 8 years.
1. If the required rate of return is 12%, what decision should be made using NPV?
2. How would the IRR decision rule be used for this project, and what decision would be reached?
3. How are the above two decisions related?
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
