SOLUTION: 25. You are invited by your no-good brother-in-law to participate in a dubious investment scheme. Your participation will cost you $10 million up front. The promised yearly cash fl

Question 729312: 25. You are invited by your no-good brother-in-law to participate in a dubious investment scheme. Your participation will cost you $10 million up front. The promised yearly cash flows you will receive (the first one a year from now) are:
3 years of $3 million each 3 years of $2 million each 3 years of $1 million each
(a)What is the expected IRR for this project?
(b)Due to the risky nature of the venture, your required rate of return is 16%. What is the NPV of the project?
Answer by lynnlo(4176) (Show Source): You can put this solution on YOUR website!

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