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You start to plan a big project. The initial purchase of the land and materials will cost $100 million today. The project will generate $16
You start to plan a big project. The initial purchase of the land and materials will cost $100 million today. The project will generate $16 million of income per year for the next 10 years. At the end of the 10th year, you will need to spend $10 million to restore the land (Hint: CF in year 10 = 6 million, cf from year1 to year9 = 16).
4) the IRR =?
A) 10.04%
B) 7.45%
C) 8.63%
D) 7.92%
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