Question 4

An investment requires an initial disbursement of 2,500,000 and the duration of the project is 3 years, in the first of which it generates a cash flow of 1,500,000, in the second 3,700,000 and the third 4,100,000.

Question 4a

a) Calculate the Net Present Value of the investment, knowing that inflation is 3% cumulative annually and that the required profitability in the absence of inflation is 8%.

Question 4b

1. a) Calculate the actual internal rate of return of the previous investment.