Justin Lieberman must earn a minimum rate of return of 15.64% as compensation for the risk of the following investment:

:

a. Use present value techniques to estimate the IRR on this investment.

b. On the basis of your finding in part a, should Justin make the proposed investment?

Initial Investment End of Year 1 2 3 4 5 WN - $7,934 Income $1,253 $2,340 $4,977 $2,076 $1,100 5