Question

Initial Outlay of a new branch=$3M and is expected to generate $500K in Cash Flow for...

Initial Outlay of a new branch=$3M and is expected to generate $500K in Cash Flow for 10yrs. Multiple choice question

a. If branch is sold for 2M in yr 10, E(r) of new branch=15.02%

b. If branch is sold for 2M in yr 10, E(r) of new branch=11.02%

c. If branch is sold for 2M in yr 10, E(r) of new branch=14.02%

d. If branch is sold for 2M in yr 10, E(r) of new branch=16.02%

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