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1. Merage Company is considering investing in a new project. The project will need an initial investment of $2,100,000 and will generate $1,200,000 (after-tax) cash

1. Merage Company is considering investing in a new project. The project will need an initial investment of $2,100,000 and will generate $1,200,000 (after-tax) cash flows for three years. Calculate the IRR for the project.

2.

Calculate the payback period:

C0= -2000, C1= +600 , C2= +1400 and C3= +5000

Group of answer choices

Three years

One year

None of the above

Two years

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