Computing internal rate of return of a deal


1. You have just paid $20 million in secondary market for winning Powerball lottery ticket. Prize is $2 million at end of the year for next 25 years. If your required rate of return is 8 percent, determine net present value (NPV) of deal?

2. Internal Rate of Return

Compute the internal rate of return (IRR) of Powerball deal in question 1?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Computing internal rate of return of a deal
Reference No:- TGS019574

Expected delivery within 24 Hours