Your friend asks you to invest $8,000 in a business venture

Finance Oct 16, 2020

Your friend asks you to invest $8,000 in a business venture. Based on your? estimates, you would receive nothing for 3 ?years, at the end of year 4 you would receive ?$2,884?, and at the end of year 5 you would receive $12,053. If your estimates are? correct, what would be the IRR on this? investment?

Expert Solution

Hence, the IRR = 13.90%

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