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What is the IRR of the project

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Question - A project requires an initial investment of 3 million Euros. The following year it requires two additional investments: the purchase of buildings for 2 million Euros and a warehouse for 750,000 Euros. From the third year on, revenues of 1,800,000 Euros are expected to increase by 10% annually. In turn, variable costs are estimated at 15% of annual revenues. If the opportunity cost is 8% and the term is 8 years, what is the IRR of the project?

Reference no: EM133057744

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