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Pablo has an opportunity to make two investments, but he can only afford to make one of them. Each one costs $25,000. The first investment
- Pablo has an opportunity to make two investments, but he can only afford to make one of them. Each one costs $25,000. The first investment can be sold in 15 years for $98,500 and has no periodic cash flow (use annual compounding). The second investment has a $200 per month cash flow for 6 years followed by cash flow of $400 per month for 8 years. The second investment has no resale value. Which investment is better, from the standpoint of highest IRR? Round to the nearest hundredths.
- Investment 1 IRR
- Investment 2 IRR
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