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  3. 2. a. over a two year time horizon an investor exp

2. a. Over a two year time horizon an investor experiences the following net cash...

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2. a. Over a two year time horizon an investor experiences the following net cash flows: Year 0 1 2 Cash flow -$8,000 $5,280 $5,320 What is the internal rate of return for the investor? Demonstrate that a bank deposit offering an annual rate equal to the internal rate of return can replicate the above set of cash flows for the investor. (7 marks)

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