Question
You are evaluating an investment that requires $1,000 upfront, and pays $100 at the end of each of the first 2 years, and an additional
You are evaluating an investment that requires $1,000 upfront, and pays $100 at the end of each of the first 2 years, and an additional lump-sum of $2,000 at the end of year 2. What would happen to the IRR if the annual payments at the end of each of the first 2 years go down from $100 to $50?
Multiple Choice
IRR increases
IRR decreases
IRR remains constant
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Financial Institutions Investments And Management An Introduction
Authors: Herbert B. Mayo
8th Edition
0324178174, 9780324178173
