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You are offered an investment that requires $1,000 now and generates cash ows of $150 at the end of each of the next 10 years.
You are offered an investment that requires $1,000 now and generates cash ows of $150 at the end of each of the next 10 years. If the required return is 10%, what should be the IRR of this investment?
Question 1 options:
8.1%. | |
7.1%. | |
The IRR is negative. | |
11.1%. | |
The IRR is 0. | |
9.1%. | |
10.1%. |
You are offered an investment that requires $1,000 now and generates cash ows of $150 at the end of each of the next 10 years. If the required return is 10%, what should be the IRR of this investment?
Question 1 options:
8.1%. | |
7.1%. | |
The IRR is negative. | |
11.1%. | |
The IRR is 0. | |
9.1%. | |
10.1%. |
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