Compute the IRR on the following cash flow streams: a. An initial investment of $25,000 followed by

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Compute the IRR on the following cash flow streams:

a. An initial investment of $25,000 followed by a single cash flow of $37,450 in year 6.

b. An initial investment of $1 million followed by a single cash flow of $1,650,000 in year 4.

c. An initial investment of $2 million followed by cash flows of $1,650,000 and $1,250,000 in years 2 and 4, respectively.


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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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