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4) An investment alternative has the following estimated cash flows over five years. Year 0 1 2 3 4 5 Cash Flow ($1,000) -71 -17
4) An investment alternative has the following estimated cash flows over five years. Year 0 1 2 3 4 5 Cash Flow ($1,000) -71 -17 30 35 76 -80 a) Determine the internal rate of return of the investment. (6 p.) b) Is this an economically sound investment if the minimum attractive rate of return is 6%? (4 p.) c) Is this an economically sound investment if the minimum attractive rate of return is 10%? (4 p.)
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