You are considering a safe investment opportunity that requires a $780 investment​ today, and will pay $870 two years from now and another $640 five years from now. a. What is the IRR of this​...

You are considering a safe investment opportunity that requires a $780 investment​ today, and will pay $870 two years from now and another $640 five years from now.

a. What is the IRR of this​ investment?

b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any​ horizon, can you make the decision by simply comparing this EAR with the IRR of the​ investment? Explain.