An investment of $150,000 is expected to generate an aft er-tax cash flow of $100,000 in one
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An investment of $150,000 is expected to generate an aft er-tax cash flow of $100,000 in one year and another $120,000 in two years. The cost of capital is 10 percent. What is the internal rate of return?
a. 28.19 percent
b. 28.39 percent
c. 28.59 percent
d. 28.79 percent
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Question Posted:
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