Question
The following are exercises on internal rates of return: A. An investment of $1000 today will bring a return of $2000 at the end of
The following are exercises on internal rates of return:
A. An investment of $1000 today will bring a return of $2000 at the end of 10 years. WHat is its internal rate of return?
B. An investment of $1000 today will return $500 at the end of each of the next 3 years. What is its internal rate of return?
C. An investment of $1000 today will return $900 at the end of 1 year, $500 at the end of 2 years, and $100 at the end of 3 years. What is its internal rate of return?
D. AN investment of $1000 will return $130 per year forever. WHat is the internal rate of return?
Please show all work/necessary steps to complete the problem(s). Thanks.
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