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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Question
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Transcribed Image Text:Suppose you are offered $7,100 today but must make the following payments:
1
2
Cash Flows ($)
O $7,100
1-3,800
2-2,500
3 -1,600
4 -1,400
Year
4
6.
7
9.
10
11
What is the IRR of this offer? (Do not round intermediate calculations. Enter your ans
12
a.
13
14
15
16
17
b.
If the appropriate discount rate is 10 percent, should you accept this offer?
18
19
multiple choice 1
20
21
Reject
Ассept
22
23
24
25
C.
If the appropriate discount rate is 19 percent, should you accept this offer?
26
27
multiple choice 2
28
29
Аcсept
Reject
30
31
32
33
What is the NPV of the offer if the appropriate discount rate is 10 percent? (A negative ar
What is the NPV of the offer if the appropriate discount rate is 19 percent? (A negative ar
34
d-1.
35
d-2.
36
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