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Values in million US$. Annual risk-free rate: 1.5%. Market risk premium: 4.5%. Q: What is the Internal Rate of Return (IRR)? t: 0 -100 1

image text in transcribedValues in million US$.

Annual risk-free rate: 1.5%.

Market risk premium: 4.5%.

Q: What is the Internal Rate of Return (IRR)?

t: 0 -100 1 30 Cash flows 2 30 3 30 4 30 5 0 (beta) 0.5 r (cost of capital) 3.75 NPV 9.54

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