Question
Given an initial investment of $10,000, a hurdle rate of 11% and the following cash flows, find the IRR: Year 1 $2,500 Year 2 $2,500
Given an initial investment of $10,000, a hurdle rate of 11% and the following cash flows, find the IRR: Year 1 $2,500 Year 2 $2,500 Year 3 $3,000 Year 4 $3,000 Year 5 $3,500
Based on the IRR in question 8, is it worth the $10,000 investment? Why or why not?
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
