2. An investment of $30,000 has uniform annual returns of $5,000 for the next eight years.

a. What is the internal rate-of-return?

b. How does the IRR change if the $5,000 payments are extended from eight years to ten years? (Recalculate the IRR.)

c. Explain why the IRR change in part (b) occurs.

d. Recalculate part (a) assuming an original investment of $40,000.

e. Explain your answer to part (d).