Rate of returm is 12%

As a separate project (Project P), you are considering sponsoring a pavilion at the upcoming World's Fair. The pavilion would cost $700,000, and it is expected to result in $8 million of incremental cash inflows during its 1 year of operation. However, it would then take another year, and $6 million of costs, to demolish the site and return it to its original condition. Thus, Project P's expected net cash flows look like this (in millions of dollars): Year (S0.7) 8.0 (6.0)