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Solve the following rate of return problems.
a. An investment of $1,000 today returns $56,000 in 50 years. What is the internal rate of return on this investment?
b. An investment costs $900,000 today and promises a single payment of $12.2 million in 22 years. What is the promised rate of return, IRR, on this investment?
c. What return do you earn if you pay $21,980 for a stream of $6,000 payments lasting 10 years?
Note: Round your answers to 2 decimal places.
Answer is complete but not entirely correct.
a. IRR 8.01 %
b. IRR 11.00 %
c. IRR 17.27 %