Question
Mr. Zhang is considering whether to invest in a risk-free project. The project can bring Mr. Zhang 5000 Yuan of cash inflow at the end
Mr. Zhang is considering whether to invest in a risk-free project. The project can bring Mr. Zhang 5000 Yuan of cash inflow at the end of the first year, and 7000 Yuan of cash inflow at the end of the second year. The total investment of the project is 10000 yuan (immediate investment). What is the IRR (internal rate of return) of the project? If the bank provides 10% interest per year, is the project financially feasible?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
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