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QUESTION

You are considering an investment in a clothes distributer. The company needs $102,000 today and expects to repay you $120,000 in a year from now.

You are considering an investment in a clothes distributer. The company needs $102,000 today and expects to repay you $120,000 in a year from now. What is the IRR of this investment​ opportunity? Given the riskiness of the investment​ opportunity, your cost of capital is 20%. What does the IRR rule say about whether you should​ invest?

What is the IRR of this investment​ opportunity?  

The IRR of this investment opportunity is ??? ​%.  ​(Round to one decimal​ place.)

Given the riskiness of the investment​ opportunity, your cost of capital is 20%. What does the IRR rule say about whether you should​ invest?

The IRR rule says that you ▼should not invest, should be indifferent, should invest ​ (Select from the​ drop-down menu.)

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