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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?

Year

Cash flow

Cumulative cash flows

0

-100,000.00

??

1

120,000.00

??





Discount rate =

10%


return =

??


NPV =

??


IRR =

??

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92222045
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