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Unformatted text preview: investment where the present value of the cash inflows equals the present value of the cash outflows. The IRR is the discount rate that results in a net present value of zero. To calculate the IRR: First calculate: Net increment investment (investment required) Factor of the IRR Net annual cash flows = Second: locate the factor derived above to identify the rate of return it represents. Choices "b", "c", and "d" are incorrect, per above....
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This note was uploaded on 04/01/2011 for the course ECON 592 taught by Professor Jeanhuang during the Spring '11 term at Keller Graduate School of Management.
- Spring '11