What is the investment net present value for alpacca

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A large stake in an Alpacca farming business can be purchased for $195,490. The Alpacca farm is expected to return $9,000 in perpetuity per quarter in arrears. The required rate of return on investments of this risk is j4 = 22%.

Problem a) What is the investment's net present value? Give your answer in dollars and cents to the nearest cent.

Problem b) What is the internal rate of return (IRR)? Give your answer as a nominal percentage per annum to 3 decimal places.

Reference no: EM132964100

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