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A fertilizer company wants to create an environmentally friendly fertilizer in a new manufacturing plant. The manufacturing plant is going to cost $81.60 million in
A fertilizer company wants to create an environmentally friendly fertilizer in a new manufacturing plant. |
The manufacturing plant is going to cost $81.60 million in today's dollars. |
The new fertilizer is likely to produce cash flows of $24.00 million for four years, starting in one year. |
The company can borrow at a rate of 8.00% to build this plant. |
How much is the IRR (internal rate of return) of this project? |
Enter your answer in the following format: 0.1234; Hint: Answer is between 0.0622 and 0.0752 |
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