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A business promises a profit of $8000 on an initial investment of $20 000 after 5 years (a) Calculate the internal rate of return. (b)

A business promises a profit of $8000 on an initial investment of $20 000 after 5 years

(a) Calculate the internal rate of return. (b) Would you advise someone to invest in this business if the market rate is 6% compounded annually?

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