Suppose you invest $2000 today and receive $10,000 in five years. a. What is the IRR of

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Suppose you invest $2000 today and receive $10,000 in five years.

a. What is the IRR of this opportunity?

b. Suppose another investment opportunity also requires $2000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?

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Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Question Posted: Aug 06, 2014 07:16 AM

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Suppose you invest $2000 today and receive $10,000 in five years. a. What is the IRR of

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Corporate Finance

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