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You are expecting the following cash flow from an investment: (i) $1,500, (ii) $2,000, (iii)$2,500 (iv) $600 and (v) $500. If the discount rate is
You are expecting the following cash flow from an investment: (i) $1,500, (ii) $2,000, (iii)$2,500 (iv) $600 and (v) $500. If the discount rate is 10%, what is the present value of the cash flow (5 Points)? Show and explain why you may or may not be willing to investment $5,000 for the cash flow (5 Points)? What is the internal rate of return (IRR)? Why is the IRR important (5 Points)?
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