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Ch10 Q25: Jamaica Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows
Ch10 Q25: Jamaica Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows of $2 million, $3 million, $4 million, and $5 million over the next four years. Its cost of capital is 16 percent.
What is the internal rate of return that Jamaica can earn on this project?
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