Consider a one-year investment that costs $100,000 and returns $120,000 in a year. The required return (discount rate) is 10%.
- What is the one year return from this investment?
- What is the net present value from this investment?
- What is the internal rate of return for this investment?
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Year
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Cash flow
|
Cumulative cash flows
|
|
0
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-100,000.00
|
??
|
|
1
|
120,000.00
|
??
|
|
|
|
|
Discount rate =
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10%
|
|
return =
|
??
|
|
NPV =
|
??
|
|
IRR =
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??
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