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P7-8 (similar to) Question Help You are considering an investment in a clothes distributer. The company needs $106,000 today and expects to repay you $125,000

P7-8 (similar to)

Question Help

You are considering an investment in a clothes distributer. The company needs

$106,000

today and expects to repay you

$125,000

in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is

14%.

What does the IRR rule say about whether you should invest?

What is the IRR of this investment opportunity?

The IRR of this investment opportunity is

nothing%.

(Round to one decimal place.)

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