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The internal rate of return on this investment is closest to: blank1 - Numeric Answer

Question

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Solution

To determine the internal rate of return (IRR) for an investment, you typically need cash flow data over time. Since I don't have that data from your question, I can't provide a specific numeric answer. Please provide the cash flows or investment details for a step-by-step calculation.

Example Steps to Calculate IRR (for reference)

  1. Break Down the Problem

    • List the cash flows associated with the investment, including the initial investment (usually a negative value) and subsequent returns.
  2. Relevant Concepts

    • Use the IRR formula which finds the rate (r) that makes the net present value (NPV) of cash flows equal to zero: NPV=Ct(1+r)t=0 NPV = \sum \frac{C_t}{(1 + r)^t} = 0
    • Where CtC_t is the cash flow at time tt and rr is the IRR.
  3. Analysis and Detail

    • If cash flows are known, set up the equation and potentially use financial calculators or software to find the rate rr iteratively.
  4. Verify and Summarize

    • Confirm calculations by ensuring that plugging the IRR back into the NPV equation results in a value close to zero.

Final Answer

Please provide the cash flow data to get a specific numeric answer!

This problem has been solved

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