a. Using the IRR formula in the textbook and what is the present value factor for this investment? b. Given the answer above, what is the investment’s internal rate of return? and c. The internal rate of return = ?
a. Using the IRR formula in the textbook and what is the present value factor for this investment? b. Given the answer above, what is the investment’s internal rate of return? and c. The internal rate of return = ?
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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6. Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years.
a. Using the IRR formula in the textbook and what is the present value factor for this investment?
b. Given the answer above, what is the investment’s
and
c. The internal rate of return = ?
PLEASE NOTE: All PV Factors will be rounded to three decimal places (i.e. 1.234). Round your IRR answers, in percentage format, to one decimal place (i.e. 12.3%).
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