Thursday, February 10, 2011

A4. Investment Criteria

A4.(Investment Criteria)

Corporate Financial Management (3rd Edition)
Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)

Individual assignment: Text Problem Set IV:
Chapter 9, Problems

A4.(Investment Criteria)
An investment of $100 returns exactly $100 in one year. The cost of capital is 10%.
a. What are the payback, NPV, and IRR for this investment?
b. Is this a profitable investment?

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