How does the firm manage day-to-day cash flow? Key Concepts Often Tested 1. Time Value of Money (TVM)
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IRR is the rate that makes NPV = 0. Since at 10% we got +$41, we need a higher rate. Try 13%: ( -1000 + 600/1.13 + 600/1.2769 = -1000 + 530.97 + 469.8 = $0.77 ) (essentially zero). How does the firm manage day-to-day cash flow