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Miguel was evaluating the feasibility of a project that has an initial investment of $190,000 and subsequent investments of $150,000 in the 1st and 2nd
Miguel was evaluating the feasibility of a project that has an initial investment of $190,000 and subsequent investments of $150,000 in the 1st and 2nd years. From the 3rd year onwards, it will generate cost savings of $215,000 every year for 7 years. a. If the project has a terminal value of $100,000, what is the Internal Rate of Return (IRR)? % Round to two decimal places b. Should the project be accepted if the company's cost of capital is 24.00%? (click to select)
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