Your firm is considering an investment today that will cost $920,000. The investment will generate a cash
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Your firm is considering an investment today that will cost $920,000. The investment will generate a cash flow of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate your company uses for such projects is 11.25%. What is the equivalent annual income of the investment?
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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