You are considering an investment opportunity that requires an initial investment of 85$ million today....
60.1K
Verified Solution
Link Copied!
Question
Finance
You are considering an investment opportunity that requires an initial investment of 85$ million today. One year from now, it will pay 9$ million, and the payments will grow by 6% every year after that forever (i.e. in perpetuity). The cost of capital is 14%. What is the IRR? Give your answer in percent, to one and only one decimal place, and with no percentage sign. For example, 6.2, 18.9 or 47.6
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.