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Use the internal rate of return to pick the better investment: A. Buy today for $500 an instrument that will pay annual cashflows of $100,

Use the internal rate of return to pick the better investment:

A. Buy today for $500 an instrument that will pay annual cashflows of $100, $200, $500 and $700.

B. Buy today for $5000 an instrument that will pay 8 annual cashflows of $500 followed by a final payment of $3000 at the end of year 9.

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