You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%. The IRR for this project is closest to:
A. 15.60%
B. 18.95%
C. 20.00%
D. 25.85%
Answer:D
You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%. The IRR for this project is closest to:
A. 15.60% B. 18.95% C. 20.00% D. 25.85%