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You are considering an investment in a clothes distributer. The company needs $104,000 today and expects to repay you $128,000 in a year from now.

You are considering an investment in a clothes distributer. The company needs $104,000 today and expects to repay you $128,000 in a year from now. What is the IRR of this investmentopportunity? Given the riskiness of the investmentopportunity, your cost of capital is 12%. What does the IRR rule say about whether you shouldinvest?

What is the IRR of this investmentopportunity?The IRR of this investment opportunity is ?%.(Round to one decimalplace.)

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