) The initial outlay of the investment is €125,000. The income stream is €30,000 in vear 1, €55,000 in year 2, €60,000 in year 3 and €70,000 in year 4. What is the net present value of the investment at 18% discount rate? ) What is the IRR of the aforementioned investment? ) Using the DCF approach requires some forecasting of the future – How can this De done?

) The initial outlay of the investment is €125,000. The income stream is €30,000 in vear 1, €55,000 in year 2, €60,000 in year 3 and €70,000 in year 4. What is the net present value of the investment at 18% discount rate? ) What is the IRR of the aforementioned investment? ) Using the DCF approach requires some forecasting of the future – How can this De done?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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