Probleman investment of 1890000 produces a perpetual stream, Ask an Expert

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Problem:

An investment of $1,890,000 produces a perpetual stream of cash flows. Next year, the cash inflow will be $94,500, and this will grow at 4% per year forever.

Required:

Question 1: What is (are) the IRR/ (IRR's) of this investment?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162599

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