Internal rate of return Sigma is an insurance company based in Albania. Altin, a product manager, is
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Internal rate of return Sigma is an insurance company based in Albania. Altin, a product manager, is responsible for evaluating the viability of a new insurance product, which covers electronic equipment. A buyer of this proposed policy would be required to pay Sigma only once, at the time of purchasing the equipment. A buyer who purchases the 3-year policy will pay Sigma L30,000 (Albanian lek). Altin estimates that the repair costs that Sigma must cover will average L11,000 for each of the policy’s 3 years. If Sigma has a cost of capital of 9%, should Altin approve the new insurance product?
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Principles Of Managerial Finance Brief
ISBN: 9781292267142
8th Global Edition
Authors: Chad J. Zutter, Scott B. Smart
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