(b) Investments A and B have equal internal rates of return. Investment A requires an initial investment of 4,000 at t = 0. The return consists of payments of 500 at the end of each year for 9 years (at t = 1 through t = 9), plus a payment of 2,000 at t = 10. Investment B requires the investor to deposit 1,000 at t = 0. The return consists of 5 annual payments of amount X, the first payment occurring at t = 1. Determine the value of X to the nearest dollar. In your answers, write out the appropriate equations of values and solve accordingly. You will need to use software to work out the solution. In your answer, mention the software/function used. If using Goal Seek from Excel or WPS, use a starting value of 0. You do not need to attach any screenshots of your working from software, but explain your thought process clearly.
