An investment of $150,000 is expected to generate an after-tax cash flow of $100,000 in one year and another $120,000 in two years. The cost of capital is 10 percent. What is the internal rate of return?
a. 28.39 percent.
b. 28.59 percent.
c. 28.79 percent.
Answer: c. 28.79 percent.
Business
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