Question: 2. A project requires an initial cost today and generates a return of $1,100 at the end of the first year. (a) What is the

2. A project requires an initial cost today and generates a return of $1,100 at the end of the first
year.
(a) What is the initial cost if the internal rate of return of this project is 10%?
(b) Given the same internal rate of return, now suppose the project generates $1,000 at the end
of each year perpetually, what is the initial cost of the project given the same IRR?

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