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A company is considering two investment options: option 1: An investment of $45000 today, and another investment of $15 000 in year 3 with returns
A company is considering two investment options:
option 1: An investment of $45000 today, and another investment of $15 000 in year 3 with returns of $18 000 in year 2 $7000 in year 3 and $50 000 in year 5.:
Option 2: An investment of $55 000 today and another investment of $5000 in year 4 with returns of $15000 in year 1, $16000 in year 3, and $60000 in year 5. Calculate the internal rate of return for each option. Which investment option should the company select? justify your answer.
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