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Your Lawyer Presents You with a Three Year Investment

Question 63

Multiple Choice

Your lawyer presents you with a three year investment.You must invest $1,000 immediately,but you are promised after-tax cash flows of $600 after one year and another $600 after two years.What is the IRR of the investment? (Round answer to nearest percent) .


A) 10%
B) 11%
C) 12%
D) 13%
E) 14%

Correct Answer:

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