What is the IRR of John investment

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Problem - John wants to buy a ranch, Blake has one of his ranches for sale, he is asking $20 million. The ranch has natural gas wells and the well should produce for another 7 years and it is expected to generate profits $5,000,000 annually for the first four years and $2,500,000 for each of the last three years. What is the IRR of John's investment?

Reference no: EM132968646

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