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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
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 | ||||||||
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