project has an initial investment cost of $1,000,000 (in Year 0), and it is expected to generate cash flows of $350,000 annually for 4 years (in

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Problem 21P
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25.A capital budgeting project has an initial investment cost of $1,000,000 (in Year 0), and it is expected to generate cash flows of $350,000 annually for 4 years (in Years 1-4). 

What is the internal rate of return (IRR)?

Group of answer choices
22.11%
26.43%
2.48%
14.96%

 
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