provide a 25% guaranteed cash flow IRR to an airline flying to your airport. The airline's cash flows are minus $1 million at the start and positive $371,739 each year for years 1-4. Calculate the subsidy to be paid at the start. Explain your answer in the box provided. Please follow this form.

Increase IRR to 25% Start Year 1 Year 2 Year 3 Year 4 Cash Flows Subsidy Subsidized CF IRR - Cash Flows IRR - Subsidized CF