Pspencer3904 Pspencer3904

20-06-2017
Business

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A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years.

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budwilkins budwilkins

20-06-2017

Is the question, what is the Annual Rate of Return?
P=A•e^rt
15=10•e^4r --> ln (e^4r) = ln (3/2)
4r = 0.4055
r = 0.1014

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