A person has two investment alternatives, both of which are $15,000. first offers a payment of $5,500 at the end of each of the next four years; on the other hand, the second alternative offers a lump-sum payment of $27,500 at the end of four years. the second alternative offers a lump sum payment of $27,500 at the end of the four years. years. If the AARR = 15%. Calculate the IRR of both alternatives. a) 19.72% y 13.63% b) 17.29% y 16.36% c) 12.79% y 18.36% d) N.A

A person has two investment alternatives, both of which are $15,000. first offers a payment of $5,500 at the end of each of the next four years; on the other hand, the second alternative offers a lump-sum payment of $27,500 at the end of four years. the second alternative offers a lump sum payment of $27,500 at the end of the four years. years. If the AARR = 15%. Calculate the IRR of both alternatives. a) 19.72% y 13.63% b) 17.29% y 16.36% c) 12.79% y 18.36% d) N.A

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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