Solve the problem related to the income stream

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Question: Assume that an investment generates the following income stream and can be purchased at the beginning of 2017 for $1,000 and sold at the end of 2020 for $1,200. Estimate the IRR for this investment. If a minimum return of 9% is required, would you recommend this investment? Explain.

Enf of Year                  Income Stream

    2017                             $140

    2018                             $120

    2019                             $100

    2020                             $ 80

    2021                             $ 60

    2022                             $ 40

    2023                             $ 20

Reference no: EM131624294

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