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1. Franchising, Inc. is considering a major investment. The investment will have an initial cost of $650,000. The cash inflows generated by the project are
1. Franchising, Inc. is considering a major investment. The investment will have an initial cost of $650,000. The cash inflows generated by the project are estimated at $ 100,000 for the first four years and $120,000 for the following 6 years. What is the internal rate of return? (Hint: It may be easier to find the correct answer by trial and error, especially if you do not have a financial calculator.) a. 10.75 percent b. 10.81 percent c. 10.92 percent d. 11.03 percent e. 11.06 percent
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