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EXERCISE - Calculating the Internal Rate of Return

Task 1: Calculate the IRR of the project.


Task 2: Considering the IRR that was obtained, what would be the implications for the given project? Should you invest? Exp

interest rate: 8.21%

Year:
0 1 2 3 4
Cash flow -1000 300 290 145 130
Present Value (PV) -1000 277 248 114 95

IRR =
project? Should you invest? Explain the reasoning behind your decision.

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164
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