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What Is the IRR of a Project Requiring a $1000

Question 18

Multiple Choice

What is the IRR of a project requiring a $1000 investment which yields cash inflows of $700, $700, and $2000, in years 1, 2 and 3 respectively. The cost of capital is 12%. (Round to nearest %)


A) 32%
B) 46%
C) 54%
D) 75%

Correct Answer:

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