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1) An investment alternative with an initial investment of $86,000 has an expected annual return...

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Finance

1) An investment alternative with an initial investment of $86,000 has an expected annual return of $18,000 and a lifespan of 15 years. This investment can be sold for $28,000 at the end of its life. What is the minimum profit an investor expects to make from an investment value of 20 percent and what is the internal rate of return (IRR) of the investment?

2) An investment alternative with an initial investment of $86,000 has an expected annual return of $18,000 and a lifespan of 15 years. This investment can be sold for $28,000 at the end of its life. If the minimum profit an investor expects to make from an investment value is 20 percent and the external ratio () is 12 percent, what is the external data ratio (ERR)?

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