Question
You are considering an investment in a clothes distributer. The company needs $104,000 today and expects to repay you $125,000 in a year from now.
You are considering an investment in a clothes distributer. The company needs $104,000 today and expects to repay you $125,000
in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 11%.
What does the IRR rule say about whether you should invest?
What is the IRR of this investment opportunity?
The IRR of this investment opportunity is ___________
(Round to one decimal place.)
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Management Control Systems
Authors: Frank G.H. Hartmann Professor, Kalle Kraus, Göran Nilsson, Robert N. Anthony, Vijay Govindarajan
2nd Edition
1526848317, 978-1526848314
