Question $22$

Assume a company can buy a new facility that will cost $$3,250,000$ and is expected to

generate $$855,000$ a year in revenue for the first three years and $$425,000$ a year in revenue

for the next three years. The company's weighted cost of capital $($WACC$)$ is $6\mathrm{.}5\%$ per year.

What is the IRR for this investment?

$5\mathrm{.}38\%$

$6\mathrm{.}00\%$

$5\mathrm{.}88\%$