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You are considering a safe investment opportunity that requires a 1,080 investment today, and will pay $710 two years from now and another $610 five

You are considering a safe investment opportunity that requires a 1,080 investment today, and will pay $710 two years from now and another $610 five years from now.

a. What is the IRR of this investment?

b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any horizon, can you make the decision by simply comparing this EAR with the IRR of the investment? Explain.

a. What is the IRR of this investment? The IRR of this investment is ___________%. (Round to two decimal places.)

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