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Assignment:

Microwave Oven Programming, Inc is considering the construction of a new plant. The plant will have an initial cash outlay of $6.1 million (= -$6.1 million), and will produce cash flows of $2.2 million at the end of year one, $4.5 million at the end of year 1, and $1.6 million at the end of years 3-5.

Required:

Question: What is the internal rate of return on this new plant?

Note: Provide support for your rationale.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91149266

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