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What is the rate of return of this investment

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Reference no: EM133037596

Question - An investment requires $16,000 today, and produces the first cash flow of $800 in two years (year 2). Cash flow is expected to grow at 2% per year after year 2.

a) What is the NPV of this investment if the discount rate is 6%?

b) What is the rate of return of this investment?

Reference no: EM133037596

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