Which of the two financial alternatives produces

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A) An investment of $100,000 that pays $10,000 semi-annually during 5 years plus $20,000 at the end of the fifth year

B) An investment of $120,000 that pays $30,000 per year.

Question 1: Which of the two financial alternatives produces has the highest internal rate of return?

Alternative A

Alternative B

Neither, they produce an identical IRR

Reference no: EM132562793

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