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Calculate the ear on this investment

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Reference no: EM133004224

Problem - An investment requires an outlay of $100,000 today. Cash inflows from the investment are expected to be $40,000 per year at the end of years 4, 5, 6, 7 and 8. If you require a 20% EAR on this type of investment, should the investment be undertaken? Calculate the EAR on this investment.

Reference no: EM133004224

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