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Builtrite Bank is setting up a brand new branch. The cost of the project will be $4.2 million. The branch will create additional cash flows
Builtrite Bank is setting up a brand new branch. The cost of the project will be $4.2 million. The branch will create additional cash flows of $875,000 over the next eight years. The firm's cost of capital is 12 percent.
What is the internal rate of return on this branch expansion? (Round to the nearest percent.)
O 13%
O 17%
O 20%
O 23%
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