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A firm is considering an investment project with the following cash flows: Year 0 = -$120,000 (initial costs); Year 1= $40,000; Year 2 =$90,000; Year
A firm is considering an investment project with the following cash flows: Year 0 = -$120,000 (initial costs); Year 1= $40,000; Year 2 =$90,000; Year 3 = $30,000. The company has a 12% cost of capital. What is the projects internal rate of return (IRR)?
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A. 16.3%
B. 28.3%
C. 30.1%
D. 19.5%
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