Why the irr on the business project is like the bank

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Reference no: EM132027545

Think about the cash flows associated with putting in the bank for five years, assuming you draw out the interest each year and then close the account.

Now think about a set of hypothetical cash flows associated with putting the same money in a business, operating for five years, and then selling out.

Write an explanation of why the IRR on the business project is like the bank's interest rate. How are the investments different?

Reference no: EM132027545

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