Question
Eli purchased an investment for $1,000. It generated the following stream of cash flows. End of year 1 $300 End of year 2 $400 End
Eli purchased an investment for $1,000. It generated the following stream of cash flows.
| End of year 1 | $300 |
| End of year 2 | $400 |
| End of year 3 | $500 |
His internal rate of return was
A) 10.65%.
B) 6.67%.
C) 9.70%.
D) 8.90%.
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
