Question
You are considering an investment in a clothes distributer. The company needs $ 108,000 today and expects to repay you $ 120,000 in a year
You are considering an investment in a clothes distributer. The company needs $ 108,000 today and expects to repay you $ 120,000 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 10 %. What does the IRR rule say about whether you should invest?
Given the riskiness of the investment opportunity, your cost of capital is 10%. What does the IRR rule say about whether you should invest?
The IRR rule says that you: (should be indifferent) (should invest) (should not invest)
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