You are considering an investment in a clothes distributer


Question: You are considering an investment in a clothes distributer. The company needs $107,000 today and expects to repay you $123,000 in a year from now.

A) What is the IRR of this investment opportunity? Given the riskiness of the investment? opportunity, your cost of capital is 19%.

B) What does the IRR rule say about whether you should? invest?

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