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Cost of development is $5000, and you could be earning 5% on another investment instead. Cash flow: Year 1: 1000 Year 2: 1500 Year 3:

Cost of development is $5000, and you could be earning 5% on another investment instead.

Cash flow: Year 1: 1000 Year 2: 1500 Year 3: 4000

What is discount rate and IRR? Would you accept the project?

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