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Obviously, an investment that requires a $ 1 0 , 0 0 0 initial payout and pays back $ 5 , 0 0 0 per

Obviously, an investment that requires a $

10, 000

initial payout and pays back $

5, 000

per year for

2

years is not a good investment. What would its NPV curve look like?

What is its IRR?

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