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Assume that you are investing today Rs. 100,000 in a bank at some interest rate compounded annually. After 4 years you will receive Rs.168,896 from

Assume that you are investing today Rs. 100,000 in a bank at some interest rate

compounded annually. After 4 years you will receive Rs.168,896 from the bank, what will be

your internal rate of return when NPV becomes equal zero? Also, if you are given a

benchmark of 12% rate of return in another investment option, what will be your decision

regarding bank investment?

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