An investor lends 1,100 and receives a payment of 500 at the end of year 1 and 700 at the end of year 2. What is the internal rate of return (IRR)?

Problem 5.1 An investor lends 1,100 and receives a payment of 500 at the end of year 1 and 700 at the end of year 2. What is the internal rate of return (IRR)