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Your company has been presented with an opportunity to invest in a project that is summarized as follows. Investment required Annual gross income Annual operating

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Your company has been presented with an opportunity to invest in a project that is summarized as follows. Investment required Annual gross income Annual operating costs Salvage value after 10 years $60,000,000 14,000,000 5,500,000 The project is expected to operate as shown for 10 years. If your management expects to make 10% in its investments before taxes, would you recommend this project? what is the IRR

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