Question

On March 1st 2015, Peach’s stock was worth $650. On March 1st 2017 it was selling...

On March 1st 2015, Peach’s stock was worth $650. On March 1st 2017 it was selling for $138.56. Was it a good investment, given a MARR of 20% per year? Assume no dividends paid over this period. Draw all cash flow diagrams.

An investor is considering financing a toll highway for $100 million. They expect to get $10 million in toll fees for each of the 30 year period they will manage the facility, but they need to pay $10 million at the end of the period to repave the highway. What is the IRR of this investment? Is is a good idea if the MARR of this company is 12% per year? Draw all cash flow diagrams.

Please show the formula you use to solve. Thanks!

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