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Concept of internal rate of return

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You are shopping for a new car and have secured offers from two different dealers for a new BMW, which costs $38,000. One dealer has proposed selling you the car for four annual payments of $12,000. A second dealer has proposed selling you the car with a loan at 6%. Use the concept of internal rate of return, show the calculations and compare the two offers.

Reference no: EM132494614

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