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Find the irr of the project

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Reference no: EM133076170

FarmFresh Grocery is considering building a new store in Cambridge. It estimates the cost of the project will be $25 million for construction at the start, but the store is expected to yield profits of $2 Million per year, indefinitely.

FarmFresh's corporate managers want to realize a return of at least 5% on the store.

A. Should the project be undertaken? Why or why not? (Show all calculations you used to arrive at your answer.)

B. Find the IRR of the project. (Show any calculations you used to arrive at your answer.)

Reference no: EM133076170

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