Business

Catherine Dunn

24 February, 05:54

Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The firm expects the project to generate annual cash flows of $7 million over the next five years. Its cost of capital is 18 percent. What is the internal rate of return on this project? (A) 17% (B) 18% (C) 19% (D) 20%

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