Question: Assume that an investment generates the following income stream and can be purchased at the beginning of 2017 for $1,000 and sold at the end of 2020 for $1,200. Estimate the IRR for this investment. If a minimum return of 9% is required, would you recommend this investment? Explain.
Enf of Year Income Stream
2017 $140
2018 $120
2019 $100
2020 $ 80
2021 $ 60
2022 $ 40
2023 $ 20