Present Value Problem
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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.
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