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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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
Transcribed Image Text:The text displays a financial problem related to calculating the internal rate of return (IRR) for a series of cash flows. The task is to determine the IRR for the cash flows listed and express the answer as a percentage rounded to two decimal places.
**Problem Statement:**
The internal rate of return for the following cash flows is closest to: (state your answer as a percentage to two decimal places: 10.52 not .1052)
**Cash Flows:**
- CF0: $ (27.50)
- CF1: $ 8.75
- CF2: $ 11.30
- CF3: $ 14.90
**Instructions:**
1. **Calculate the IRR** using the cash flow figures provided.
2. **Submit your answer** as a percentage with two decimal precision.
There are no graphs or diagrams provided with this problem.
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- Given the following cash flows and a discount rate of 9.5%, the net present value is closest to: $ CFO (27.50) 2$ $ $ CF1 8.75 CF2 11.30 CF3 14.90 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $1.26 b $28.76arrow_forward3.arrow_forward2. Compute the internal rate of return for each of the cash flows in problem 1.arrow_forward
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