Question
Over a two year time horizon an investor experiences the following net cash flows: Year 0 1 2 Cash flow -$8,000 $5,280 $5,320 What
Over a two year time horizon an investor experiences the following net cash flows: Year 0 1 2 Cash flow -$8,000 $5,280 $5,320 What is the internal rate of return for the investor? Demonstrate that a bank deposit offering an annual rate equal to the internal rate of return can replicate the above set of cash flows for the investor.
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Engineering economy
Authors: Leland Blank, Anthony Tarquin
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9781259027406, 0073376302, 1259027406, 978-0073376301
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