An investment of $400,000 will yield profits of $45,000 per year for three years, $55,000 for the next four years, and $60,000 for the last three years. The terminal value at the end of 10 years is $50,000. What is the IRR of the investment? Should the investment be undertaken if the cost of capital is 11%?

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The Answer of An investment of $400,000 will yield profits of $45,000 per year for three years, $55,000 for the next four years, and $60,000 for the last three years. The terminal value at the end of 10 years is $50,000. What is the IRR of the investment? Should the investment be undertaken if the cost of capital is 11%?

An Investment of $400,000 Will Yield Profits of $45,000 Per