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Business, 31.03.2020 03:59 mizu36011

The CEO also knows that he doesn’t have to just ‘hold on’ to the money at time 0, he can find a temporary fund to invest it and then withdraw money to pay for the negative cash flows. However, he’s not sure how well his investment will have to do to make the whole plan worthwhile. If the minimum attractive interest rate for the company is 10%, calculate what the temporary fund’s interest rate (annual effective) will have to be. (i. e. what fund interest rate makes the overall project have an IRR of 10%) (10 points)

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