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I tried using Excel's RATE formula but wasn't able to come up with the correct answers. Thank you in advance! Solve the following rate of
I tried using Excel's RATE formula but wasn't able to come up with the correct answers.
Thank you in advance!
Solve the following rate of return problems. a. An investment of $1,000 today returns $56,000 in 50 years. What is the internal rate of return on this investment? b. An investment costs $900,000 today and promises a single payment of $12.2 million in 22 years. What is the promised rate of return, IRR, on this investment? c. What return do you earn if you pay $21,980 for a stream of $6,000 payments lasting 10 years? Note: Round your answers to 2 decimal placesStep by Step Solution
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