An investment costs $465 and is expected to produce cash flows of $100 at the endof each of the next 4 years, then an extra lump sum payment of $200 at the end ofthe fourth year. What is the expected rate of return on this investment? (9.05%)

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A: Excel Spreadsheet:

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A: IRR: It is the minimum return required by an investor from an investment or a project.

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Q: What is the NPV of the project if the required return is 12% APR compounded annually?

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Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…

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