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Suppose you invest $2,250 today and receive $9,250 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose
Suppose you invest $2,250 today and receive $9,250 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,250 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?
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