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Problem:

Which of the following investments yields the highest IRR using a 15% discount rate?

  • a $500 investment that provides $100 per year for 10 years
  • a $1,000 investment that provides nothing for 5 years than cash flows $300 for the next five years
  • a $2,000 investment that provides $500 per year for 10 years
  • a $4,000 investment that provides nothing for 9 years but is redeemable for $8,000 at the end of the 10th year

Note: Solve the problem and show all work.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91174287

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