What is the approximate IRR of an asset that (1) sells for $1,120, (2) exists for only 6 years and (3) pays $282 annually for each of those 6 years? You can either use your calculator or trial and error works too. a) 15.5% O b) 9.3% c) 12% d) 13.2%
What is the approximate IRR of an asset that (1) sells for $1,120, (2) exists for only 6 years and (3) pays $282 annually for each of those 6 years? You can either use your calculator or trial and error works too. a) 15.5% O b) 9.3% c) 12% d) 13.2%
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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What is the approximate IRR of an asset that (1) sells for $1,120, (2) exists for only 6 years and (3) pays $282 annually for each of those 6 years? You can either use your calculator or trial and error works too.
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Transcribed Image Text:What is the approximate IRR of an asset that (1) sells for $1,120, (2) exists for only 6
years and (3) pays $282 annually for each of those 6 years? You can either use your
calculator or trial and error works too.
a) 15.5%
b) 9.3%
c) 12%
d) 13.2%
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