Sachdeva Inc. is considering investing in a new business. It is expected to require a cash investment of $1.5 million today. The business will generate yearly (after-tax) cash flows of $1 million for four years, starting one year from today. Importantly, the CEO has calculated the NPV of the new business to be $1.57 million. What is the required rate of return? (Note, you can answer either in percent or decimal. For example, if the answer is 10.5%, please enter "10.5", or "0.105" -- both will be accepted).

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To calculate the required rate of return we use the f... View the full answer