Question:

Alexander is shopping for a car and read the following advertisement in the newspaper: Own a new Spitfire! No money down. Four annual payments of just RM10,000. He has shopped around and know that he can buy a Spitfire for RM32,000 cash. As financial manager advice whether you will provide a loan to him based on internal rate of return (IRR) of the loan. Assume that you must make the annual payments at the end of each year.

Note: Answer should be typed. not by excel and hand hand written