Solve the following rate of return problems. a. An investment of $1,300 today returns $61,000 in 50 years. What is the internal rate of return
Solve the following rate of return problems.
a. An investment of $1,300 today returns $61,000 in 50 years. What is the internal rate of return on this investment?
b. An investment costs $900,000 today and promises a single payment of $11.5 million in 22 years. What is the promised rate of return, IRR, on this investment?
c. What return do you earn if you pay $22,470 for a stream of $5,000 payments lasting 10 years? What does it mean if you pay less than $22,470 for the stream? More than $22,470?
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Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
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