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You pay $10,000 today to purchase an equity stake in a friend's business. You expect your equity stake will pay you $1,000 one year from
You pay $10,000 today to purchase an equity stake in a friend's business. You expect your equity stake will pay you $1,000 one year from today, S1,100 one year after that, then $1,210 the next year, etc. (you forecast cash flows will be annual and continue to grow 10% per year in perpetuity). What is the IRR of this investment opportunity? 20.096 O b. 21.096 O c. 15.096 O d. 10.096 None of the other answers are correct Oe
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