Question
You are considering investing in a start-up project at a cost of $100,000. You expect the project to return $500,000 in seven years. Given the
You are considering investing in a start-up project at a cost of $100,000. You expect the project to return $500,000 in seven years. Given the risk of this project, its cost of capital is 20% per year compounded annually. calculate The IRR for this project.
Step by Step Solution
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Step: 1
To calculate the IRR for the project we need to find the discount rate th...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
