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An investment costs $7,000 and generates a stream of revenue as follows for five years. If the rate of return is 8%, is it

 

An investment costs $7,000 and generates a stream of revenue as follows for five years. If the rate of return is 8%, is it profitable investment? Calculate the rate of return for this investment End of Year CF Year 1: $1,500 Year 2: $2,500 Year 3: 0 Year 4: 3,500 Year 5: 1,000

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