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A new product will cost $350,000 to launch. Expected profits are $55,000, $65,000, and $100,000 in years two to four, and $120,000 in each of
A new product will cost $350,000 to launch. Expected profits are $55,000, $65,000, and $100,000 in years two to four, and $120,000 in each of years five to seven. What is the IRR of the new product launch? Would you recommend that the company proceed, based on their cost of capital of 10%?
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