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Kevin invests $2000 at time 0. He receives $6443 at time 1 and pays $4500 at...

Kevin invests $2000 at time 0. He receives $6443 at time 1 and pays $4500 at time 2. Compute the yield rate of his investment

Solutions

Expert Solution

CF0 = -2000

CF1 = 6443

CF2 = -4500

The yield rate of this investment is equal to the internal rate of return (IRR)

IRR is found using excel function with cash flows as the input

Screenshot with formulas

jeff jeffy answered 2 years ago
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