Calculate the net present value and internal rate of return

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You put $800 into an investment that pays $70 in year 1, $70 in year 2, $190 in year 3 and $680 in year 4.
The cost of capital is 9%. Answer the following questions.

a) Find the net present value of the investment
b) Find the internal rate of return for the investment
c) Should you make the investment? Explain.

 

Reference no: EM1350557

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