You purchase a first edition of Adam Smiths The Wealth of Nations today for $100. One year later (year 1), you anticipate you can sell it for $230. One year after that, (year 2), you would have to pay the Australian Tax Office $132 tax on your sale.

a. Find the positive breakeven interest rates on your investment.

b. Determine whether this is a pure investment. (Use only one breakeven interest rate in your calculation doesnt matter which one).

c. Your minimum acceptable rate of return (MARR) is 15%. What is the Annual Equivalent (AE) of your two-year investment?

d. Suppose you use the modified internal rate of return MIRR to evaluate investments (instead of using the internal rate of return IRR). Calculate MIRR and determine if you should buy the book. (Note: use MARR when evaluating both cash inflows and cash outflows).