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

Question

asked Sep 28, 2018 132k views

1 Answer

MattP · Answer 1 · 2018-10-03T01:28:19+0000

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