Difference in net present value and internal rate of return

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Reference no: EM131011740

1. Frank spends $30,000 on an investment that will create $33,000 in revenues for a year. Assuming that the investment cost Frank 15%, do you think it would be a good investment?

Be sure to show your calculations.

2. If the cost of capital for number one was 6% would it be a good investment?

Be sure to show your calculations.

3. Explain the difference between Net Present Value and Internal Rate of Return. How might these concepts be important to a manager of a company? How might these concepts be important to you in your chosen career?

Reference no: EM131011740

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