Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 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?

You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $9.6 million. Investment A will generate $1.86 million per year​ (starting at the end of the first​ year) in perpetuity. Investment B will generate $1.55 million at the end of the first​ year, and its revenues will grow at 2.2% per year for every year after that. Which investment has the higher​ IRR? (Round to the nearest​integer.) Which investment has the higher NPV when the cost of capital is 7.8%​? In this​ case, for what values of the cost of capital does picking the higher IRR give the correct answer as to which investment is the best​ opportunity?

If a particular investment will pay $500, 5 months from now, and an additional $500, 9 months from now, what is the largest amount that an investor should be willing to invest today, assuming money earns a rate of return of 7%? Assume that the investment has no money left after the two withdrawals.

Assume that it costs $1,000 to start a project.  If the project will give $400 profit in the first year, $500 in the second year and $300 in the third year. find the payback period.  Now assume that the interest rate is 10%, find the net present value (NPV) and the profitability index (PI) for this project