Internal rate of return on this investment

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In July of 2102, Taylor purchased 2,500 shares of XYZ common stock for $78,400. He then sold 400 shares of XYZ in July of 2013 for $97.5 per share. The remaining 2,100 shares were finally sold for 25.71 per share in July 2014.

a. Draw a cash-flow diagram of this situation.

b. What was Taylor's internal rate of return (IRR) on this investment?

c. What was the ERR on this investment if the external reienvest ment rate is 10% per year?

Reference no: EM131978748

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