Question
Problem 5.5* An investor lends $11,000 and receives $4,000 at the end of year 1, $5,000 at the end of year 2 and $4,500 at
Problem 5.5* An investor lends $11,000 and receives $4,000 at the end of year 1, $5,000 at the end of year 2 and $4,500 at the end of year 3. Find the internal rate of return (IRR).
Problem 5.6 Repeat Problem 5.5 and calculate the net present value of the investment using interest preference rate of 8.5%. Does the investment meet our interest preference rate?
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Corporate And Project Finance Modeling Theory And Practice
Authors: Edward Bodmer
1st Edition
1118854365, 9781118854365
