A $500,000 capital investment will produce annual profits of $100,000 for the first four years and $150,000 for the next four years. It will have no residual value. What is its IRR? Should it be undertaken if the cost of capital is 15%?

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The Answer of A $500,000 capital investment will produce annual profits of $100,000 for the first four years and $150,000 for the next four years. It will have no residual value. What is its IRR? Should it be undertaken if the cost of capital is 15%?

A $500,000 Capital Investment Will Produce Annual Profits of $100,000