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You are debating whether or not to invest in your best friend's business idea, so use IRR to evaluate the project: a. Cost of Capital: 10% b. Initial Investment: -Rs. 200 Mn C. Cash Flows over the past 5 years: ■ Years 1 & 2: Rs. 50 MN ■ Years 3 & 4: Rs. 100 Mn ■ Year 5: RS. 125 Mn What is the Answer (a) 15.36% (b) 30.20% (c) -17.29% (d) 26.04% (e) none of the above

You are debating whether or not to invest in your best friend's business idea, so use IRR to evaluate the project: a. Cost of Capital: 10% b. Initial Investment: -Rs. 200 Mn C. Cash Flows over the past 5 years: ■ Years 1 & 2: Rs. 50 MN ■ Years 3 & 4: Rs. 100 Mn ■ Year 5: RS. 125 Mn What is the Answer (a) 15.36% (b) 30.20% (c) -17.29% (d) 26.04% (e) none of the above

Essentials Of Investments
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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You are debating whether or not to invest in your best friend's business idea, so use IRR to evaluate the project: a. Cost of Capital: 10% b. Initial Investment: -Rs. 200 Mn C. Cash Flows over the past 5 years: ■ Years 1 & 2: Rs. 50 MN ■ Years 3 & 4: Rs. 100 Mn ■ Year 5: RS. 125 Mn What is the Answer (a) 15.36% (b) 30.20% (c) -17.29% (d) 26.04% (e) none of the above
Transcribed Image Text:You are debating whether or not to invest in your best friend's business idea, so use IRR to evaluate the project: a. Cost of Capital: 10% b. Initial Investment: -Rs. 200 Mn C. Cash Flows over the past 5 years: ■ Years 1 & 2: Rs. 50 MN ■ Years 3 & 4: Rs. 100 Mn ■ Year 5: RS. 125 Mn What is the Answer (a) 15.36% (b) 30.20% (c) -17.29% (d) 26.04% (e) none of the above
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