Question
Li Corporation invests XX million to build a factory. The factory is expected to produce the following profits: End of Year 1 2 3 4
Li Corporation invests XX million to build a factory. The factory is expected to produce the following profits:
End of Year 1 2 3 4
Profitsmillions1 4 2 1
At the end of 4 years, the factory will be obsolete and will be closed.
The Net Present Value of this project to Li Corporation is 1 million at an interest rate of 7.9%.
Calculate the Internal Rate of Return of this project.
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Listed Volatility And Variance Derivatives
Authors: Yves Hilpisch
1st Edition
1119167914, 978-1119167914
