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4. Suppose that you are planning to take a year va- cation to bike across the United States. Someone is willing to sell you a

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4. Suppose that you are planning to take a year va- cation to bike across the United States. Someone is willing to sell you a new bicycle for $500 At the end of the year, you expect to resell the bicycle for $350. The benefit to you of using the bicycle is the equivalent of $170. a. What is the internal rate of return? b. If the discount rate is 5 percent, should you buy the bicycle

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