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A Four-Year Project Requires $1 000 000 as the First

Question 49

Multiple Choice

A four-year project requires $1 000 000 as the first cost and brings $2 000 000 at the end of the fourth year. If expected annual inflation over this period is 5%, what is the real IRR of this project?


A) 13.3%
B) 18.9%
C) 27.6%
D) 47.6%
E) 95.0%

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