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. What is the IRR of the stream of cash flows below if the original investment is $100,000. What is the NPV if the required

. What is the IRR of the stream of cash flows below if the original investment is $100,000. What is the NPV if the required rate of return is 12%? Do you make the investment?

Year 1 $20,000

Year 2 $55,000

Year 3 $60,000

Year 4 -$10,000

ANSWER: IRR = ________ NPV = ________ INVEST? _______

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