13. A project has the following cash flows. What is the internal rate of return?

Year: 0 1 2 3

Cashflow: -520,000 112,900 367,200 204,600

		13.97 percent
		15.39 percent
		12.46 percent
		16.20 percent
		14.08 percent

Part B. Top Shelf Industries is considering remodeling a building that it leases to a retail store. The remodeling costs are estimated at $2.4 million. If it proceeds with the remodeling, the tenant has agreed to pay an additional $765,000 a year in rent for the next 5 years. The discount rate is 10.3 percent. What is the benefit of the remodeling project to Top Shelf Industries?