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.

You are considering an investment with the following characteristics. The investment will cost you $551 today, but will pay you annual benefits of $107 for 11 years starting at the end of the first year. The relevant opportunity cost of capital is 9%. What is the NPV of this investment? Round your answer to two decimals. Enter negative values with a - sign. Don't enter the $-symbol as part of your answer.