EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202785
Author: DeMarzo
Publisher: VST
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Chapter 7, Problem 29P

a)

Summary Introduction

To determine: The IRR of the investment.

Introduction:

IRR helps to make capital-budget decisions. IRR relies on the cash inflows and outflows of the project, instead of external data. The project should be accepted if the IRR of the project exceeds a hurdle rate.

b)

Summary Introduction

To determine: The option from the investment and the bank account with an EAR of 5%.

Introduction:

IRR helps to make capital-budget decisions. IRR relies on the cash inflows and outflows of the project, instead of external data. The project should be accepted if the IRR of the project exceeds a hurdle rate.

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Chapter 7 Solutions

EBK CORPORATE FINANCE

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