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What is the internal rate of return of this opportunity

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Reference no: EM131012736

Suppose you invest $4,000 today and receive $10,500 in five years.

a) What is the internal rate of return (IRR) of this opportunity?

The IRR of this opportunity is............... (ROUND IT UP TO TWO DECIMAL PLACES.)

b) Suppose another investment opportunity also requires $4,000 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?

 

The periodic payment that gives the same IRR is..................... (ROUND IT UP TO THE NEAREST CENT .)

Reference no: EM131012736

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