Originally Posted by
Joshuatree
8.4% return per annum
"Ignoring the time value of money, the Crown invested $1,042 million in Air New Zealand, has received $1,234 million of cash, and currently holds an investment in the company worth $1,341 million.
That might sound like a significant return, but it was over a fourteen year period. To put that into perspective, if you invested $1,000 in a bank term deposit that paid (say) 5% interest (after tax), and reinvested all of the interest payments, then after fourteen years you would have almost $2,000 in the bank.
The attached spreadsheet shows the details of the IRR calculation which, taking account of the time value of money, tells us the Crown's return on its investment in Air New Zealand was 8.4% a year"