Now Ann has another question. It is about a very difficult task she got from a professor at the local
university where she is studying a finance course. The question is as follows: Imagine an investment
of 20 and then a cashflow of 6 payable at the end of each year during five years. What would then the
internal rate of return be. This needs to be calculated not using functions provided by excel but manually.
The investment is paid in the beginning of year 1 and cash flows are received in the end of each year.
Then the professor has asked Ann to mention why the use of IRR may be in doubt.
Help Sam to do the analysis of the two tasks and give your recommendation when it comes to the investment. Show all calculation steps