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Given the following set of cash flows, for a capital budgeting project, what is the Internal Rate of Return (IRR) ? Initial Investment (I) =

  1. Given the following set of cash flows, for a capital budgeting project, what is theInternal Rate of Return (IRR)?

Initial Investment (I) = $20,000

CF1= $5,500

CF2= $6,125

CF3= $8,625

CF4= $6,750

2.Digital Systems, Inc. just paid a dividend ofD0= $3.25per share on its stock.The dividends are expected to grow at a constant rate ofg = 3 percentper year indefinitely.If investors require a return ofKC/S= 13 percenton the company's stock, what is the current price,P0?

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