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14 July, 21:33

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

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  1. 14 July, 21:45
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    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
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