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Modern Federal Bank is setting up a brand new branch. The cost of the project will be $1.2 million. The branch will create additional cash
Modern Federal Bank is setting up a brand new branch. The cost of the project will be $1.2 million. The branch will create additional cash flows of $250,000, $412,500, and $650,000 over the next three years. The firm's cost of capital is 6 percent. What is the internal rate of return on this branch expansion? Round your answer to the nearest percent.
5%
4%
none of these
3%
6%
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