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Consider the Ideko intrinsic valuation example seen in class. Differently from what was done in class, assume that there are no changes in working capital
Consider the Ideko intrinsic valuation example seen in class. Differently from what was done in class, assume that there are no changes in working capital management in Ideko. As such, Accounts Receivables remains at 90 days of Sales, and Raw Material inventories remain at 45 days of Raw Material costs. Which of the following comes is closest to the IRR from KKP's perspective?
45.3% per year.
39.8% per year
25.8% per year.
22.2% per year.
17.7% per year
13.8% per year.
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