A investment opportunity requires an investment today of $7,500 and then in 3 years, will generate a revenue flow of $12,100 with prob. 0.4 and $9,000 with prob. 0.6. What is the internal rate of return for this project?
A investment opportunity requires an investment today of $7,500 and then in 3 years, will generate a revenue flow of $12,100 with prob. 0.4 and $9,000 with prob. 0.6. What is the internal rate of return for this project?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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am. 191.
Transcribed Image Text:A investment opportunity requires an investment today of $7,500 and then in 3 years, will generate a
revenue flow of $12,100 with prob. 0.4 and $9,000 with prob. 0.6. What is the internal rate of return for
this project?
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