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explain how to get net inflows 3. Suppose an investment fund has the following beginning-of-year values ($mm) and HPRs (%) for that year. The year-four
explain how to get net inflows
3. Suppose an investment fund has the following beginning-of-year values ($mm) and HPRs (%) for that year. The year-four ending value is 3.4. Assume net inflows occur at the end of each year. a. What must the value of the net inflow in each of the four years, respectively? $0.36 million, $0.40 million, $0.50 million, and $0.60 million b. What are the cash flows for t=0 through t=4, respectively, that we need to use to compute the IRR? $2.40 million, $0.36 million, $0.40 million, $0.50 million, $2.80 million c. What is the dollar-weighted return (IRR)? 8.725\% Step by Step Solution
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