Calculate the present value of the investment

Reference no: EM13139134

If an investor is offered an opportunity to invest $500,000 in a new restaurant and he calculates the present value of this investment to be $400,000 using his standard discount rate of 15%, the IRR on this potential investment would be:

A. equal to 15%.

B. higher than 15%.

C. lower than 15%.

D. it is impossible to tell based on the information provided.

Reference no: EM13139134

Questions Cloud

What is the kingdom of god : What is the Kingdom of God, or the Reign of God? What is Jesus's connections with the kingdom of God? Why was Jesus killed?

Finished consultation services : On December 31, 2010, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $400,000, a due date of December 31, 2013, and a stated rate of 5%, with interest receivable at the end of each year..

Question regarding moral theology : Theology Vocabulary. Define the theological terms below. They should demonstrate an understanding of the term and its relevance to the course.

Percentage of accidents covered by insurance company : Iif we want to be 90% confident that the sample percentage is within (+/-) 3 % of the actual percentage of the accidents covered by the insurance company?

Calculate the present value of the investment : If an investor is offered an opportunity to invest $500,000 in a new restaurant and he calculates the present value of this investment to be $400,000 using his standard discount rate of 15%, the IRR on this potential investment would be:

Curtin university : In the analyses below, when drawing your diagrams assume that students can choose among only two products on campus, namely tobacco and food.

Topic - worldcom : Topic - WorldCom

What challenges would face the greek government : What challenges would face the Greek government if they wanted to undertake fiscal policy to address the problems described in b?

Which of the data support using confidence level : In a randome sample of 32 units of this year's version of the Vagabond the mean output power is 42 watts, with a standard deviation of 8 watts.

User Account

All Pages