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An individual presently owns an oil lease. The payments from this lease beginning at the end of this year are $10,000, decreasing at the rate
An individual presently owns an oil lease. The payments from this lease beginning at the end of this year are $10,000, decreasing at the rate of 5% each year. There are 15 annual payments to be received over the life of the lease. An investor offers to purchase the lease for a single payment of $174,642 payable 10 years from the present. Find the IRR on this investment.
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