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A firm, FIREL, is considering a new plant. It will cost $100 million upfront and take one year to build. After that, it is expected
A firm, FIREL, is considering a new plant. It will cost $100 million upfront and take one year to build. After that, it is expected to generate profits of $24 million at the end of every year of production. The cash flow is expected to last forever. What is the IRR? (The first cash inflow will occur at the end of year two.)
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