4) A new project has the following predicted profits. The initial investment is $3,000,000. (10)

Year Revenue

1 $200,000

2 $400,000

3 $600,000

4 $800,000

5 $1,200,000

6 $1,200,000

7 $1,400,000

8 $1,600,000

a) Determine the Rate of Return for the project.

b) If your companys MARR is 12%, should you invest?