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1 IRR Problem: 2 You are offered an asset costing 5600 that has cash flows of $50 every six month (end of period) of the

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1 IRR Problem: 2 You are offered an asset costing 5600 that has cash flows of $50 every six month (end of period) of the next 10 years. a) If your cost of capital is 8 percent, should you purchase it? b) What is the IRR of the asset? (Setup cash flows in Excel spreadsheets and use appropriate Excel functions to derive your answers.) 9

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