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What is Internal Rate of Return - Monthly Fixed Cash Flows with Reversions? Please provide examples.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

ChapterP1: Part 1: Integrative Problem: The International Financial Environment

Section: Chapter Questions

Problem 4Q

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Question

What is Internal Rate of Return - Monthly Fixed Cash Flows with Reversions? Please provide examples.

Definition Definition Discount rate of a project wherein its net present value equals zero. Internal rate of return equates the present value of future cash flows with the initial investments. Internal rate of return helps to determine nominal cash flows.

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