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A local entrepreneur asks you to invest $ 1 1 , 0 0 0 in a business venture. Based on your estimates, you would receive

A local entrepreneur asks you to invest $

11, 000

in a business venture. Based on your

estimates, you would receive nothing for

3

years

,

at the end of year

4

you would receive

3, 965,

and at the end of year

5

you would receive $

15, 312 .

If your estimates are

correct, what would be the IRR on this

investment?

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