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Think about the cash flows associated with putting in the bank for five years, assuming you draw out the interest each year and then close the account.

Now think about a set of hypothetical cash flows associated with putting the same money in a business, operating for five years, and then selling out.

Write an explanation of why the IRR on the business project is like the bank's interest rate. How are the investments different?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92864197

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