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A company is considering two investment options: Option 1: An investment of $35,000 today, and another investment of $11000 in year 3, with returns of
A company is considering two investment options:
- Option 1:An investment of $35,000 today, and another investment of $11000 in year 3, with returns of $17,000 in year 2, $8000 in year 3, and $45,000 in year 5.
- Option 2:An investment of $45,000 today, and another investment of $6000 in year 4, with returns of $14,000 in year 1, $15,000 in year 3, and $50,000 in year 5.
Calculate the internal rate of return for each option.Which investment option should the company select?(Show ALL CF entries in the tables below.Justify your answer.)
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