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Netflix Inc. is considering a new streaming service expansion project. The initial investment is $1,000,000, and the expected cash flows are as follows: Year 1:
Netflix Inc. is considering a new streaming service expansion project. The initial investment is $1,000,000, and the expected cash flows are as follows:
Year 1: $300,000
Year 2: $400,000
Year 3: $500,000
Calculate the internal rate of return (IRR) for the project and advise whether Netflix should undertake it.Step by Step Solution
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