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The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $ 2 7 0 ,
The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $ at the end of each of the next two years. At the end of the third year, the company will receive payment of $
The company can speed up construction by working an extra shift. In this case, there will be a cash outlay of $ at the end of the first year followed by a cash payment of $ at the end of the second year. Use the IRR rule to show the approximate range of opportunity costs of capital at which the company should work the extra shift.
Note: Enter your answers as a percent rounded to decimal places. Enter the smallest percent first.
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