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A project costs $200,000 and produces an annual cash flow of $80,000 for three years. Calculate the NPV using a 6% discount rate. Use this

A project costs $200,000 and produces an annual cash flow of $80,000 for three years. Calculate the NPV using a 6% discount rate. Use this figure to explain if the IRR for the project is greater than 6% or less than 6%. ( 2 marks )

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