It is known that the market rates for financing and reinvestment of resources for the investment project under a company are respectively 6.2% pa and 4.3% pa. and that its cost of capital for the project is 12% per year. It is requested: (i) using the appropriate method, to determine the internal rate of return of the project, (ii) the justification for the use of the method employed (iii) and the feasibility of the project from the point of view of IRR versus cost of capital
It is known that the market rates for financing and reinvestment of resources for the investment project under a company are respectively 6.2% pa and 4.3% pa. and that its cost of capital for the project is 12% per year. It is requested: (i) using the appropriate method, to determine the internal rate of return of the project, (ii) the justification for the use of the method employed (iii) and the feasibility of the project from the point of view of IRR versus cost of capital
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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It is known that the market rates for financing and reinvestment of resources for the investment project under a company are respectively 6.2% pa and 4.3% pa. and that its cost of capital for the project is 12% per year. It is requested: (i) using the appropriate method, to determine the
Fluxo de caixa=
Transcribed Image Text:Anos
0
1
2
3
4
5
678
Fluxo de Caixa ($)
0
290.000,00
140.000,00
200.000,00
-1.240.000,00
800.000,00
600.000,00
150.000,00
248.000,00
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