Chapter 9
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?
A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment. The cost of capital is 10%.
|
