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Ivanhoe inc, a resorrt management company is refurbishing one of its hotels at a cost of 7 0 5 6 5 6 3 . Management

Ivanhoe inc, a resorrt management company is refurbishing one of its hotels at a cost of

7056563 .

Management expects taht this will lead to additional cash flows of

1610000

for each of the next six years. What is the IRR of this project. If the appropraiate cost of capital is

12 %

should ivanhoe go ahead with this project?

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