A company has the opportunity to take over a redevelopment project in an industrial area of a city. No immediate investment is required, but it must raze the existing buildings over a four-year period and, at the end of the fourth year, invest $2,330,000 for new construction. It will collect all revenues and pay all costs for a period of 10 years, at which time the entire project, and properties thereon, will revert to the city. The net cash flows are estimated to be as shown on the right. Tabulate the PW versus the interest rate and determine whether multiple IRRs exist. If so, use the ERR method when = 7% per year to determine a rate of return. Year End Net Cash Flow $470,000 280,000 110,000 -2,330,000 170,000 230,000 290,000 4 7