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You are considering an investment in a clothes distributer

Question - You are considering an investment in a clothes distributer. The company needs $108,000 today and expects to repay you $128,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 11%. What does the IRR rule say about whether you should invest?

What is the IRR of the investment opportunity?

The IRR of the investment is what %? (Round to the nearest cent.)

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Accounting Basics: You are considering an investment in a clothes distributer

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