1. What is IRR (Internal rate of Return) ? PW of Benefits, PW of Cost, EUAW, EUAB, EUAC ?
Please use an example, and explain in your own words the values of the above terms.
2. Seven months ago, you purchased a stock at a price of $36.04 a share. Today, you sold those shares for $43.15 a share. During the past seven months, you have received dividends totaling $0.24 a share while inflation has averaged 3.6%. What is your approximate real rate of return on this investment?