The net cash flows from an investment are -X dollars in the first year, positive Y dollars

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The net cash flows from an investment are -X dollars in the first year, positive Y dollars in year T, and zero in all other years. Write a formula for the NPV. Set the NPV equal to zero, and solve for the IRR in terms of X and Y.

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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Mar 18, 2016 04:49 AM

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The net cash flows from an investment are -X dollars in the first year, positive Y dollars

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a The investments NPV is b The investments IRR is Explanation a The ...View the full answer

Microeconomics

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