The following table shows the option of a Business in which the value at time zero means the disbursement, and the others, the expected revenues. By visual inspection, it appears that for an interest rate equal to zero, the return on this investment is positive, and for an interest rate of 50% per year the return is negative. (Consider √69 = 8.307). Values in reais Expiration date in years -10,000 0 6,000 1 6,000 2 So, check the option that represents the internal annual rate of return for this Business proposal. A8.33% B13.07%. C15.67%. D16.61%. E16.66%.
The following table shows the option of a Business in which the value at time zero means the disbursement, and the others, the expected revenues. By visual inspection, it appears that for an interest rate equal to zero, the return on this investment is positive, and for an interest rate of 50% per year the return is negative. (Consider √69 = 8.307). Values in reais Expiration date in years -10,000 0 6,000 1 6,000 2 So, check the option that represents the internal annual rate of return for this Business proposal. A8.33% B13.07%. C15.67%. D16.61%. E16.66%.
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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The following table shows the option of a Business in which the value at time zero means the disbursement, and the others, the expected revenues. By visual inspection, it appears that for an interest rate equal to zero, the return on this investment is positive, and for an interest rate of 50% per year the return is negative.
(Consider √69 = 8.307).
Values in reais Expiration date in years
-10,000 0
6,000 1
6,000 2
So, check the option that represents theinternal annual rate of return for this Business proposal.
A8.33%
B13.07%.
C15.67%.
D16.61%.
E16.66%.
Values in reais Expiration date in years
-10,000 0
6,000 1
6,000 2
So, check the option that represents the
A8.33%
B13.07%.
C15.67%.
D16.61%.
E16.66%.
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