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Benton Music is considering investing $775,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net
Benton Music is considering investing $775,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $80,000 per year for the next 9 years. Assume that Benton Music uses an 12% hurdle rate. What is the approximate internal rate of return (IRR) of the studio investment?
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