You are considering an investment opportunity that requires an initial investment of $148 million in period 0. Starting in one year, it will generate $11.2 million per year in perpetuity (i.e. every year forever). The cost of cap 13%. What is the IRR (the internal rate of return) for the project? [Note that getting the actual value should not require trial and error or a financial calculator, because this is a simple case.l

You are considering an investment opportunity that requires an initial investment of $148 million in period 0. Starting in one year, it will generate $11.2 million per year in perpetuity (i.e. every year forever). The cost of cap 13%. What is the IRR (the internal rate of return) for the project? [Note that getting the actual value should not require trial and error or a financial calculator, because this is a simple case.l

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter14: Real Options

Section: Chapter Questions

Problem 4MC

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