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Should rania make the proposed investment

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Question: Rania Farouk must earn a return of 12% on an investment that requires an initial outlay of $2,000 and promises to return $6,000 in eight years.

a. Estimate the IRR on this investment.

b. On the basis of your finding in part a, should Rania make the proposed investment?

Reference no: EM131624287

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