Question
Consider an investment project that requires deposits of 100 at the start and 140 at the end of second year with a return of 240
Consider an investment project that requires deposits of 100 at the start and 140 at the end of second year with a return of 240 at the end of the first year. We are interested in computing the IRR.
A) Set up the equation that computes the IRR, and then solve it.
B) Did you get two answers? Which do think is correct?
Show your work.
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
