Consider a venture that requires $10M initial investment, pays nothing for five years, and starting by the end of the 6th year, returns annual revenues of $5M for five years (until the end of the 10th year). Calculate the rate of return of this venture. Chose the closest value to your answer. A) 14.12 B) 13.50 14.68 D 12.88 12.32
Consider a venture that requires $10M initial investment, pays nothing for five years, and starting by the end of the 6th year, returns annual revenues of $5M for five years (until the end of the 10th year). Calculate the rate of return of this venture. Chose the closest value to your answer. A) 14.12 B) 13.50 14.68 D 12.88 12.32
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Consider a venture that requires $10M initial investment, pays nothing for five years, and starting by the end of the 6th year, returns
annual revenues of $5M for five years (until the end of the 10th year). Calculate the rate of return of this venture. Chose the closest
value to your answer.
14.12
B
13.50
14.68
D) 12.88
E) 12.32
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