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Internal Rate of Return for a Company's New Development Project

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A Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of capital is 20 percent. What is the internal rate of return on this project?

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Solution Summary

This solution attaches an Excel spreadsheet that show how the IRR is calculated for a given project.

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