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Consider the following investment: Pay $100 today and receive $z once a year for 10 years starting next year If the interest rate is 10%

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Consider the following investment: Pay $100 today and receive $z once a year for 10 years starting next year If the interest rate is 10% and is 5, is the investment a good investment? How about if x is 20? If x is 10, what does the interest rate have to be to make the present value of this investment zero [This interest rate is called the internal rate of return]

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