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Internal Rate of Return (IRR)

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Your firm has been hired to develop new software for the university's class registration system. Under the contract, you will receive $496,000 as an upfront payment. You expect the development costs to be $431,000 per year for the next three years. Once the new system is in place, you will receive a final payment of $837,000 from the university four years from now.

What is the IRR of the opportunity now?

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Solution Summary

The solution computes IRR for the given project.

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