A venture requiring an immediate investment of $500,000 and an additional investment of $200,000 in three years' time will generate annual profits of $150,000 for seven years starting next year. There will be no significant terminal value. Calculate the IRR of the investment. Should the investment be undertaken at a 13% cost of capital?

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The Answer of A venture requiring an immediate investment of $500,000 and an additional investment of $200,000 in three years' time will generate annual profits of $150,000 for seven years starting next year. There will be no significant terminal value. Calculate the IRR of the investment. Should the investment be undertaken at a 13% cost of capital?

A Venture Requiring an Immediate Investment of $500,000 and an Additional