Irr of the new product launch

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A new product will cost $350,000 to launch. Expected profits are $55,000, $65,000, and $100,000 in years two to four, and $120,000 in eachof years five to seven. What is the IRR of the new product launch? Would you recommend that the company proceed, based on their costof capital of 10%?

Reference no: EM131335558

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