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Kate Berry will not invest unless she can earn at least a(n) 5 % return. She is evaluating an investment opportunity that requires an initial

Kate Berry will not invest unless she can earn at least a(n) 5 % return. She is evaluating an investment opportunity that requires an initial outlay of $2,800 and promises to return $ 4,600 in 15 years.

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

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

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