What is the annual worth of his strategy

Reference no: EM132177162

Question - Pyramid Scheme - Bernie Madoff has figured out a clever investment strategy. In the first year, he makes $100,000. Every subsequent year, he makes twice as much as the year before. In year 19, he goes to jail, which has a value of -$10 million for Bernie.

What is the annual worth of his strategy?

What is the internal rate of return?

Reference no: EM132177162

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